1. A local restaurant is trying to determine whether it should add empanadas to its menu. Before they commit to the flaky mini pie, the restaurant sampled the empanadas to its customers and then asked customers if they would purchase the item if it was priced at $6.99.

Statistical Method

Survey of Knowledgeable Groups

Judgment of the Decision Maker

2. For simplicity's sake, Drake decides to estimate the number of eggs he should order for his corner store without any intervening steps. Quite quickly, he decides to order 50 dozen eggs to restock his shelves.

Survey of Knowledgeable Groups

Judgment of the Decision Maker

Statistical Method

3. Kate is the sales manager for a large pharmaceutical firm. Every month, she asks the field sales representatives to estimate the number of doctors and hospitals that will begin prescribing the firm's new drug next month.

Statistical Method

Survey of Knowledgeable Groups

Judgment of the Decision Maker

4. After plotting the sales data from the last 13 years, the marketing manager noticed a linear pattern emerging. By extending the line beyond the observed period, the marketing manager was able to forecast sales for the next 3 years.

Survey of Knowledgeable Groups

Judgment of the Decision Maker

Statistical Method

5. At the beginning of the firm's fiscal year, Jose is asked to provide a sales forecast for its line of motorcycles. To begin the process, he determines the number of motorcycles sold last year and then evaluates both positive and negative factors to determine the forecast.

Statistical Method

Survey of Knowledgeable Groups

Judgment of the Decision Maker

6. To identify the trends present in 10 years of its sales data, the marketing manager employed the Box-Jenkins technique, which utilizes autoregression, moving averages, and seasonal differencing to make the data stationary and facilitate sales forecasting.

Statistical Method

Survey of Knowledgeable Groups

Judgment of the Decision Maker