Final Answer:
In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the last three years and calculates a growth trend. Henry is employing Time series analysis method. Therefore, the correct option is a) Time series analysis.
Step-by-step explanation:
Henry Thompson's approach of using past sales data to calculate a growth trend aligns with the time series analysis method of forecasting. Time series analysis involves analyzing historical data over a period to identify patterns, trends, and seasonal variations to make predictions about future outcomes.
By examining sales data from the last three years, Henry is employing this quantitative method to forecast future sales based on the observed historical patterns. This method assumes that future outcomes will follow past trends within the data pattern, allowing for the projection of future sales trends. Time series analysis considers factors like seasonality, cyclic patterns, and trends, enabling businesses to anticipate future demands and plan accordingly.
Henry's utilization of this method demonstrates a reliance on historical sales patterns as a basis for predicting the firm's sales performance in the upcoming year. Therefore, the correct option is a) Time series analysis.