Question

The _____ method of sales forecasting is typically applied to monthly or quarterly data where a seasonal pattern is evident and the manager wishes to forecast sales not only for the year but also for each period of the year.

1) Delphi technique
2) Users' expectations
3) Decomposition
4) Time series
5) Statistical demand analysis

Answer 1

The method of sales forecasting that is typically applied to monthly or quarterly data where a seasonal pattern is evident and the manager wishes to forecast sales for each period of the year is Decomposition.

Step-by-step explanation:

The method of sales forecasting that is typically applied to monthly or quarterly data where a seasonal pattern is evident and the manager wishes to forecast sales for each period of the year is Decomposition.

In decomposition, the time series data is broken down into its different components, such as trend, seasonal, and irregular components. The method then uses these components to forecast sales for each period of the year.

For example, if a manager wants to forecast sales for each month of the year, decomposition can help identify the seasonal pattern and predict the sales for each month based on historical data.