A clothes retailer has estimated a linear trend equation including trend, seasonal and cyclical components...

Vendor: CIMA
Product: BA1
Update on: Jul 28, 2025
Questions: 468

CIMA BA1 Question Answer

A clothes retailer has estimated a linear trend equation including trend, seasonal and cyclical components to forecast its sales for the next four quarters Which of the following factors would generate actual sales figures that are likely to differ markedly from the forecast?

A drop in sales due to emergency roadwork blocking access to the store

A drop in sales due to the ongoing economic recession.

An increase in sales due to the increasing popularity of their brand.

An increase in sales before a major religious festival