A manufacturer of bathtubs analyzes the relationship between its sales and the number of new houses being built in a particular region in order to forecast bathtub sales in that region.This type of forecasting is an example of:

Question

Quizplus · Accepted Answer

This is an example of correlation analysis, which involves examining the relationship between two variables (in this case, bathtub sales and the number of new houses being built) in order to make predictions about future sales based on changes in the independent variable (number of new houses being built). Time-series analysis, sales force composite method, and customer expectations method are all other methods of forecasting, but they are not specifically suited to analyzing the relationship between two variables like correlation analysis is.

A Manufacturer of Bathtubs Analyzes the Relationship Between Its Sales