Exam 14: Estimating Potentials and Forecasting Sales

When forecasting sales, leading indicators work well for products whose sales are influenced by basic changes in the economy.

The forecasting technique known for its ability to emphasize recent data and systematically discount old information is known as:

Sales forecasting using a moving average takes several recent periods of sales and uses the figures as a prediction of sales in the next period.

One advantage of using multiple regression is that it tends to forecast accurately without using a lot of historical data.

When forecasting time series data with cyclical patterns, an analyst using simple regression can base the forecasting equation on the logarithms of the data.