Forecasting Sales Using Extrapolation

HideShow resource information
  • Created by: Natasha
  • Created on: 17-12-12 13:57

The simple method of predicting the future is to assume it will be like the past.

This method is more reliable when applied to the immediate future.

As circumstances are unlikely to change radically in the short term, it is assumed that the pattern of sales continue to follow recent trends.

The process of predicting based on what happened before is known as extrapolation.

- extrapolation can often be done by drawing a line by eye to extend the trend on the graph.
- add a broken…


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »