Forecasting Techniques Technique Description Application Quantitative Time series analysis Fits a trend line to a mathematical Predicting next quarter's sales on equation and projects into the future the basis of four years of previous by means of this equation sales data Regression models Predicts one variable on the basis of Seeking factors that will predict a known or assumed other variables certain level of sales (for example, price,advertising expenditures) Econometric models Uses a set of regression equations to Predicting change in car sales as a simulate segments of the economy result of changes in tax laws Economic indicators Uses one or more economic Using change in GDP to predict indicators to predict a future state of discretionary income the economy Substitution effect Uses a mathematical formula to Predicting the effect of microwave predict how,when,and under ovens on the sale of conventional what circumstances a new product ovens or technology will replace an existing one Qualitative Jury of opinion Combines and averages the opinions Polling all the company's human of experts resource managers to predict next year's college recruitment needs Salesforce composition Combines estimates from field sales Predicting next year's sales of personnel of customers'expected industrial lasers purchases Customer evaluation Combines estimates from established Surveying major dealers by a car purchases manufacturer to determine types and quantities of products desired ©Prentice Hall,.2002 9-7Forecasting Techniques © Prentice Hall, 2002 9-7