Your Company Earned Sales of $10 Million Last Year and Is

Multiple Choice

Your company earned sales of $10 million last year and is anticipating a growth rate this year of 12.5%. You calculate this year's sales may be $12.5 million. Which forecasting method did you use to arrive at this answer?

A) exponential interpolation
B) trend extrapolation
C) information extension
D) inductive extrapolation