Question

Katherine is developing a forecast for her company's next year's sales of an organic fertilizer to retail gardening nurseries. she is assembling the sales estimates for her company's product by adding together the territory estimates provided by her salespeople. she is engaging in _____ forecasting.

Answer 1

She is engaging in Bottom-up Forecasting.

What is Bottom-Up Forecasting?

Bottom-up forecasting is a high-level prediction of micro-level inputs to estimate revenue for a particular year or group of years. Revenue teams, for example, frequently utilize this strategy to forecast the company's future performance based on individual sales or rep performance.

Bottom-up forecasting is analogous to assessing the health of a complicated system, such as a vehicle, by examining its most fundamental components, such as its engine components.

The essential distinction between top-down and bottom-up methodologies is the perspective used to conduct your analysis. Bottom-up forecasting is excellent for assessing the impact of certain performance measures on revenue. However, in order to truly grasp the health of a complicated firm, we must examine it from several perspectives.

In a top-down study, we estimate aggregate demand. This style of evaluation considers past performance to forecast future performance.

Therefore, Katherine is developing a forecast for her company's next year's sales of organic fertilizer to retail gardening nurseries. she is assembling the sales estimates for her company's product by adding together the territory estimates provided by her salespeople. she is engaging in Bottom-Up forecasting.

For more information on Bottom-up Forecasting, refer to the given link:

brainly.com/question/14683037

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