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4.3 True or False Quiz

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  • Unit 4 - Marketing/
  • 4.3 Sales forecasting (HL)/
  • 4.3 True or False Quiz

Unit 4.3 True or False Quiz - Sales forecasting (HL only)

To test your understanding of this topic (sales forecasting), answer the following true or false questions.

It may be beneficial for you to refer to both BMT 7 - Descriptive Statistics and BMT 15 - Simple linear regression (HL only) before taking this quiz.

No.StatementTrue or False?
1.The range in a data set describes the numerical difference between the highest and the lowest numbers in a data set.

True

2.Sales forecasting is a quantitative management technique used to predict a firm’s sales over a given period of time.

True

3.Mode, range, and standard deviation are all statistical techniques used to analyse sales forecasting data.

True

4.Time series analysis describe the sales forecasting technique that involves making future predictions based on trends identified from past data.

False - this is called extrapolation

5.A limitation of sales forecasting is that the longer into the future we forecast, the less reliable the results are likely to be.

True

6.Unlike seasonal fluctuations, cyclical variations can last well over a year sometimes.

True

7.The median value in a data set shows the sum of all items divided by the number of items in the data set.

False

8.The outcome of sales forecasting is often criticised on the basis of GIGO (garbage in, garbage out).

True

9.Cyclical variations describe recurrent fluctuations in sales linked to the business cycle of booms and slumps (growth and recession).

True

10.Reliable sales forecasting helps all aspects of business functions, including production, HR, and finance to plan for the changes in sales.

True

11.The median average is the statistical technique used to measure the middle number in a given data set, once all items have been ranked in numerical order.

True

12.Time series analysis describes a sales forecasting technique that attempts to predict sales levels by identifying the underlying trends from a sequence of actual sales figures recorded at regular intervals in the past.

True

13.Variance analysis describes recurrent fluctuations in demand caused by variations in demand for certain goods during certain times of the year.

False - this is caused by seasonal variations

14.The most frequently occurring value in a set of data is called the mode.

True

15.The three main causes of fluctuations in sales are seasonal variations, cyclical variations, and random variations.

True

16.Sales forecasting is generally based on recent sales trends, with consideration of competitive developments as well as economic and social trends that affect the particular industry in question.

True

17.Random variations describe unpredictable variations in sales revenue caused by unusual or irregular factors that cannot be accurately anticipated.

True

18.Questionnaires are a statistical technique used to analyse sales forecasting data.

False

19.Moving averages describes the method involving identifying trends by smoothing out seasonal, cyclical, or random variations in the data set.

True

20.The mathematical measure of the distribution of data around the mean value is called standard deviation.

True

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