Question

A student makes the following claim: “It is easier to forecast the demand for apple juice at a supermarket than the demand for all of the juice in the store. Forecasting demand for apple juice requires less information than for forecasting demand for all juice products and therefore we should find that our forecasts for apple juice are more accurate.” Discuss the validity of this claim.

Answer 1

answer-

yes, It is easier to forecast the demand for apple juice at a supermarket than the demand for all of the juice in the store because in the forecasting of apple juices there are less factors to determine the demand of apple juice while for the demand of all of the juice requires a lot more factors to determine the future demand.

factors to determine the demand of apple juice-

• price
• brand

factors to determine the demand of all juices-

• price of each juice
• flavor of each juice
• brand of each juice
• customer need for which flavor of juice etc.

now we can see that in apple juice demand there are only two factor information is required while in all of the juice there are more than two factors are required to forecast the demand at store.

*hope above answer would help you.good luck.