Quantitative Sales Forecasting

• Extrapolation is a tool used for quantitative sales forecasting, where trends in numerical data are carried forward to make predictions about the future.
• Moving averages help to flatten out major fluctuations in data, providing more accurate predictions.
• Scatter graphs and correlation data can be used to estimate the impact of changes in one variable on another related variable.

The module discusses the tools used for quantitative sales forecasting, focusing on extrapolation, moving averages, scatter graphs, and correlation data. Extrapolation involves using past trends to predict future outcomes, but it is important to note that trends may not always continue. Moving averages help to smooth out fluctuations in data, providing more accurate predictions. Scatter graphs and correlation data can estimate the impact of one variable on another. The line of best fit on a scatter graph can be used to make predictions. However, it is crucial to understand that correlation does not imply causation. For example, a positive correlation between murder rates and ice cream sales does not mean that one causes the other, but rather that both are influenced by rising temperatures.