Question

A toy manufacturer has excellent sales figures for its toys in country P but inadequate figures in the neighboring country R. In country P, per capita consumption is known to increase at a predictable ratio as per capita gross domestic product (GDP) increases. If per capita GDP is known for country R, per capita demand for the toys can be estimated using the relationships established in country R. What method of forecasting does this example illustrate?

Answer 1

Answer: Analogy method of forecasting

Step-by-step explanation:

The analogy method of forecasting predicts that the demand for a product grows in same way in all countries, relative to their economic growth.