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WalesBusinessQuick questions
Business Analysis and Strategy (A2 Unit 3)
Quick questions on Sales forecasting and time series - WJEC A-Level Business
3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is extrapolation?Show answer
Extrapolation projects the identified trend forward to forecast future periods. It is quick, cheap and useful for planning in a stable market. But it rests on a strong assumption - that the past trend continues - so it is unreliable when the market changes (new competitors, a recession, a fashion shift) and ignores one-off events. The further ahead a forecast reaches, the less reliable it becomes.
What is q1?Show answer
Define the term moving average. [2 marks]
What is q2?Show answer
Sales over four quarters were 30, 50, 70 and 90 (£000). Calculate the four-quarter moving average. [2 marks]
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