A forecast based on average past demand.

A forecast based on average past demand.

• A. Market Share
• B. Moving Average
• C. Marketing Plan
• D. Marketing audit

Answer: (B)

The idea being tested is forecasting demand using past data. A forecast based on average past demand uses a moving average, which takes the average of a set number of previous periods and uses that value as the next period’s forecast. This smooths out random fluctuations and works best when demand is relatively stable, with no strong trend or obvious seasonality. If demand shows a trend or seasonal patterns, more advanced forms like weighted or exponential smoothing might be used to place more emphasis on recent data. The other terms relate to market position or marketing functions rather than a method for predicting future demand from historical figures.

The idea being tested is forecasting demand using past data. A forecast based on average past demand uses a moving average, which takes the average of a set number of previous periods and uses that value as the next period’s forecast. This smooths out random fluctuations and works best when demand is relatively stable, with no strong trend or obvious seasonality. If demand shows a trend or seasonal patterns, more advanced forms like weighted or exponential smoothing might be used to place more emphasis on recent data. The other terms relate to market position or marketing functions rather than a method for predicting future demand from historical figures.