In an effort to forecast his firm's sales for the coming year,Henry Thompson takes sales for the last three years and calculates a growth trend.Henry is employing which forecasting method?
A) Time series analysis
B) Executive judgment
C) Surveys
D) Regression analysis
E) Market tests

Question

Quizplus · Accepted Answer

Time series analysis is a forecasting method that uses historical data to identify patterns and trends over time. By analyzing sales data from the last three years, Henry is using time series analysis to forecast his firm's sales for the coming year. Option B) Executive judgment involves relying on the subjective opinions of executives, and is not applicable in this scenario. Option C) Surveys involve collecting data from a sample of customers or stakeholders, and is not applicable in this scenario. Option D) Regression analysis involves identifying relationships between variables, and may not be necessary if a simple trend analysis can suffice. Option E) Market tests involve introducing new products or services to a limited market to gauge consumer response, and is not applicable in this scenario.

In an Effort to Forecast His Firm's Sales for the Coming