Sep 26, 2017 · If you come to the end of a recessionary business cycle and you have analyzed the cyclical influence as a long-term trend, your forecasts are going to be too low as an expansionary cycle takes hold. When you don't know how changes might affect your business, your forecasts based on trend analysis are not reliable.
What is a major disadvantage of the trend analysis method to forecasting Select from MKTG 431 at San Francisco State University. Study Resources ... What is a major disadvantage of the trend analysis method to forecasting Select ... School San Francisco State University; Course Title MKTG 431; Uploaded By aubriecalica1. Pages 26 Ratings 100% (1 ...
The trend analysis is not free from snags. Some of them are: (a) Selection of Base Year: It is not so easy to select the base year. Usually, a normal year is taken as the base year. But it is very difficult to select such a base year for the propose of ascertaining the trend. Otherwise, comparison or trend analyses will be of no value.
May 20, 2016 · If the predictions vary for variables related to how your sales and your income, trend analysis may be faulty and you will need to use other methods for your forecasting exercises, such as analysis of current market conditions to …
Trend analyses is very useful for comparative analysis of date in order to measure the financial performances of firm over a period of time and which helps the management to take decisions for the future i. e. it helps to predict the future.
Trend analysis helps the analyst to make a proper comparison between the two or more firms over a period of time. It can also be compared with industry average. That is, it helps to understand the strength or weakness of a particular firm in comparison with other related firm in the industry. ADVERTISEMENTS:
Trend analysis helps the analyst/and the management to understand the short-term liquidity position as well as the long-term solvency position of a firm over the years with the help of related financial Trend ratios.