Question

Truzan Creations, one of the leading names in the handicraft industry, recently launched a new artifact in the market. The company uses a database to store information on the number of products manufactured, the weekly sales, the list of suppliers, and the profits achieved. The process component of the information system is used to conduct analysis on the data to generate information about sales. Which of the following can be used by Truzan Creations to generate predictions for its next sales period?

A) Forecasting modelsB) Estimation graphsC) Modeling chartsD) Theoretical hypotheses

Answer 1

Answer: Option A

Step-by-step explanation: In simple words, forecasting refers to the process under which an entity tries to make prediction about its future operations by using the past data and the present trends as a reference for analysis.

In the given case, Truzan creations keeps records of its past operations and current trends in market. Therefore, we can conclude that the company must use forecasting tools to generate predictions fro their future sale.