Question

A Boston Hallmark store is preparing a budget for the next year and needs to forecast sales. The store notices variation in sales around holidays. What pattern describes the data to be forecastedSeasonalityRationalityRoating

Answer 1

Answer: seasonality

Explanation: seasonality describes a part of the year when something or a particular event happens or peaks that often is repeated. Seasonality is also defined as a predictable fluctuation that occurs in a business or economy during the course of a fiscal year and is essential in analyzing stocks and economic trends, determining certain business decisions etc. One of such example of seasonality is often seen in rising sales during holiday seasons.

Answer 2

The correct answer is A) Seasonality.

A Boston Hallmark store is preparing a budget for the next year and needs to forecast sales. The store notices variation in sales around holidays. The pattern that describes the data to be forecasted is "Seasonality."

This sales term means that during a specific season, the volume of sales increases due to the high demand on the part of the consumers. In this case, when Christmas comes, the Boston store has data that proves that there is a considerable positive variation during the Christmas season and that is why this variation must be included in the budget and the forecasting of sales in that season.