Edexcel A Level Business 3.3 Decision Making Techniques

What is the purpose of a moving average in sales forecasting?

• To measure customer satisfaction

• To smooth out fluctuations in sales data

• To calculate net profit

• To identify fixed costs

If a company has quarterly sales of £10,000, £15,000, and £20,000, what is the three-period moving average for the second quarter?

• £12,500

• £15,000

• £17,500

• £18,000

What is the primary benefit of using moving averages in sales forecasting?

• They increase short-term fluctuations

• They remove seasonal variation

• They identify long-term trends

• They decrease data collection costs

Which type of data is most suitable for time-series analysis?

• Monthly sales figures

• Customer complaints

• Employee attendance

• Marketing expenses

What does a scatter graph primarily help to identify?

• Sales figures

• Relationship between two variables

• Profit margins

• Employee productivity

What is extrapolation in sales forecasting?

• Calculating profits

• Using historical data to predict future trends

• Calculating average cost

• Identifying fixed costs

If the line of best fit on a scatter graph shows an upward trend, what does this indicate about the relationship between the variables?

• Negative correlation

• No correlation

• Positive correlation

• Random correlation

What is a key limitation of using quantitative sales forecasting?

• It is too costly

• It does not account for future uncertainties

• It requires no data

• It is completely accurate

Quantitative sales forecasting is less effective if...

• The market is stable

• There are significant external changes

• Data is accurately recorded

• The time frame is short

Which of the following is NOT a limitation of quantitative sales forecasting?

• Predicts long-term trends precisely

• Can be affected by sudden market changes

• Requires reliable historical data

• Does not account for qualitative factors