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Topic: Business
Number of pages / Number of words: 2 / 555
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When there is a boom the cyclical variations line runs above the trend line and below it when there is a recession.

? Actual Sales line reflects short-term rifts in demand and supply.

Barometric forecasting ? Used to predict future economic trends, by analysing patterns of time-series data. The business would try to look for an indication or barometer of future demand...


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E.g. Personal computers - No. of new offices being built.

Econometric forecasting ? measures past relationships between two variables such as GDP and consumer spending, and to see how changes in other variables will affect the future course of others.

Suitable technique: Time-series ? reliable, measurable, enabling the optician firm to analyse the time path of sales...


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