For years the trend in sales of disposable diapers moved closely with the number of new births. However, as the number of women in the work force increased and as more women returned to jobs after babies were born, use of disposable diapers rapidly increased. This is an example of
A) the limitations of using the factor method.
B) estimating the target market potential.
C) a weakness of the trend extension method.
D) all of the above.
E) none of the above.

Question

Quizplus · Accepted Answer

The trend extension method assumes that past trends will continue, but it may not account for changes in behavior, such as more women working, which can affect sales independently of birth rates.

For Years the Trend in Sales of Disposable Diapers Moved