A Company Wanted to Estimate the Market Growth Potential for a Beverage

Multiple Choice

A company wanted to estimate the market growth potential for a beverage in country X, for which it had inadequate sales figures, but the company had excellent beverage data for neighboring country Y. In country Y, 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 X, per capita consumption for the beverage can be estimated using the relationships established in country Y. This is an example of which of the following methods of forecasting?

A) Probabilistic forecasting
B) Reference class forecasting
C) Expert opinion
D) Analogy
E) Linear regression