Question

In 2019, a marketing manager for New Balance’s Fresh Foam Zante shoe needs to forecast sales through 2021. She begins with the known totals for 2018 and adjusts for positive factors like acceptance of new high-tech designs and great publicity, and for negative factors like higher inflation and predicted moves by the competition. This type of forecast is referred to as
a.trend extrapolation.
b.direct forecasting.
c.lost-horse forecasting.
d.linear trend forecasting.
e.a survey of buyers’ intentions.

Answer 1

Answer:

The correct answer is letter "C": lost-horse forecasting.

Explanation:

The lost-horse forecasting is an estimating strategy that starts analyzing the last values of the variable that is going to be studied. Then, a list of all components that could affect the estimation is written. This list serves as an assessment to determine if the components could have a positive or negative impact on the variable. Finally, the estimation is provided.

Answer 2

Answer: The correct answer is "c. lost-horse forecasting.".

Explanation: This type of forecast is referred to as lost-horse forecasting.

This type of forecast is used based on a known value (usually the last) of the element on which you want to forecast, identify the variable factors that affect this element according to its impact either positive or negative, and prepare a final forecast .