Decision-making Techniques (Edexcel A-Level Business): Flashcards
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Quantitative sales forecasting method
Quantitative sales forecasting method
Uses statistical techniques to predict sales from historical data
Time series analysis purpose
Time series analysis purpose
Examines data over time periods to identify patterns & trends
Trend in time series data
Trend in time series data
Underlying long-term direction showing increase/decrease/stable
Moving averages purpose
Moving averages purpose
Smooths short-term fluctuations to reveal underlying trend
Centring in moving averages
Centring in moving averages
Used for even-period averages to align with specific time points
4-period centred moving average formula
4-period centred moving average formula
Eight-period moving total ÷ 8
Extrapolation definition
Extrapolation definition
Extending past trends into the future to make predictions
Variation from trend formula
Variation from trend formula
Actual sales - Trend
Correlation coefficient r = +1 means
Correlation coefficient r = +1 means
Perfect positive correlation - all points on upward line
Correlation vs causation principle
Correlation vs causation principle
Correlation doesn't prove one variable causes the other