IB Business Management MCQ QuizIB_Business_Management_4_3 Sales

___________ involves examining past data and applying a single, simplified measure to predict future trends.

• Extrapolation

• Market research

• Time series analysis

• Regression analysis

Identify the sales forecasting technique that involves studying the patterns, trends, and characteristics of a dataset to make predictions or uncover insights.

• Extrapolation

• Market research

• Time series analysis

• Regression analysis

A firm with 7% annual sales growth for the past five years is expected to continue growing at the same rate for the next three years. Which sales forecasting technique is used to predict future sales?

• Extrapolation

• Inference

• Intuitive decision making

• Time series analysis

Which of the following is not a valid form of variation in time series analysis?

• Cyclical variations

• Inverse variations

• Random variations

• Seasonal variations

Identify the type of variation that applies to sales that vary during periods of economic growth and economic decline.

• Cyclical variations

• Direct variations

• Random variations

• Seasonal variations

Identify the product least likely to experience seasonal variations in demand.

• Halloween costumes

• IB textbooks

• Ski resorts

• Televisions

Identify the type of variations in sales forecasts caused inexplicable or unpredictable factors.

• Adverse variations

• Cyclical variations

• Random variations

• Seasonal variations

Identify the incorrect statement about sales forecasting from the options below.

• A key benefit is the technique is based on historical data

• Sales forecasts can help a firm to improve its liquidity position

• They can help to secure external sources of funding

• They guide production and inventory management

Which statement about sales forecasting is incorrect?

• External factors can significantly impact sales

• It helps to predict future sales volumes and revenue

• It is not an exact science as there will always be a degree of uncertainty

• It is not necessary to conduct market research as past data are used

Using simple linear regression, identify the most accurate line of best fit extrapolating the historical sales data for 2024.