Question

Which of the following is not a method of demand forecasting?

• A. Survey method
• B. Statistical method
• C. Leading indication method
• D. Production method

Hint:

Forecasting = Predicting demand using surveys, statistics, and indicators, not production.

Answer 1

The Correct Option is D

Step 1: Meaning of demand forecasting.
Demand forecasting means estimating the future demand of goods and services based on data, trends, and market analysis.
Step 2: Methods of demand forecasting.
- Survey method: Collecting data from consumers.
- Statistical method: Using mathematical and statistical tools.
- Leading indication method: Using indicators like income, population, or economic growth.
Step 3: Why production method is not correct.
Production method deals with estimating output, not consumer demand.
Hence, it is not considered a method of demand forecasting.
Step 4: Option analysis.
- (A) Survey method: Correct method.
- (B) Statistical method: Correct method.
- (C) Leading indication method: Correct method.
- (D) Production method: Wrong, not a forecasting technique.
Step 5: Conclusion.
Production method is not a method of demand forecasting.