Understanding Sales Forecasting

What does the range in a data set represent?

• The range represents the difference between the maximum and minimum values in a data set.

• The range shows the most frequently occurring value in a data set.

• The range indicates the average value of a data set.

• The range is the total number of values in a data set.

How is sales forecasting defined?

• Sales forecasting is the estimation of future sales revenue.

• Sales forecasting is the prediction of customer satisfaction.

• Sales forecasting is the calculation of production costs.

• Sales forecasting is the analysis of past sales data only.

What are mode, range, and standard deviation used for?

• Standard deviation measures the total number of data points

• Range calculates the average of all values

• Mode is used to find the most common value, range shows the spread of data, and standard deviation assesses data variability.

• Mode indicates the highest value in a dataset

What is time series analysis in sales forecasting?

• Time series analysis is a statistical method used to forecast future sales by analyzing historical sales data over time.

• Time series analysis focuses on product pricing strategies.

• Time series analysis is used to evaluate employee performance.

• Time series analysis is a method to analyze customer demographics.

Why is long-term sales forecasting considered less reliable?

• Short-term forecasts are more uncertain.

• Long-term forecasts are based on fixed trends.

• Increased uncertainty over time.

• Sales data is always accurate.

How do cyclical variations differ from seasonal fluctuations?

• Cyclical variations are caused by weather changes, while seasonal fluctuations are linked to economic trends.

• Cyclical variations are always predictable, while seasonal fluctuations are not.

• Cyclical variations differ from seasonal fluctuations in duration and cause; cyclical variations are long-term and linked to economic cycles, whereas seasonal fluctuations are short-term and tied to specific seasons.

• Seasonal fluctuations occur over several years, whereas cyclical variations happen within a single year.

What does the median value in a data set indicate?

• The median indicates the range of values in a data set.

• The median represents the highest value in a data set.

• The median is the average of all values in a data set.

• The median indicates the middle value of a data set.

What does GIGO stand for in the context of sales forecasting?

• Good Input, Good Output

• Garbage Out, Garbage In

• General Input, General Output

• Garbage In, Garbage Out

What are cyclical variations linked to in business?

• Technological advancements in production.

• Seasonal trends in consumer behavior.

• Economic cycles or business cycles.

• Changes in government regulations.

How can past data trends influence future sales predictions?

• Sales predictions are solely based on current economic conditions.

• Past data trends have no impact on future sales predictions.

• Past data trends can significantly enhance the accuracy of future sales predictions by revealing patterns and behaviors.

• Future sales can only be predicted through market surveys.