Lesson 2.12.1

2.12.1 Forecasting Quiz: OCR Business, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.12.1, Forecasting: 20 multiple choice questions for the OCR Business (H431), Unit 2: Business objectives and strategy, written with Revision Ninja.

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The 20 questions

  1. Which type of forecasting relies on subjective judgments, opinions and non-numerical data?

    • Time series analysis
    • Qualitative forecasting
    • Extrapolation
    • Quantitative forecasting

  2. Which structured qualitative forecasting method uses repeated rounds of anonymous expert questionnaires?

    • Intuition
    • Sales force composite
    • Brainstorming
    • Delphi technique

  3. Which of the following is an unstructured method of qualitative forecasting?

    • Delphi technique
    • Brainstorming
    • Moving average
    • Time series analysis

  4. In OCR A Level Business, moving averages for time series analysis must use what number of years?

    • Double digit
    • Prime number
    • Even number
    • Odd number

  5. What term describes extending a trend line beyond existing data points to estimate future values?

    • Correlation
    • Extrapolation
    • Interpolation
    • Regression

  6. Which type of variation in time series data is linked to long-term fluctuations in the wider economy?

    • Random variation
    • Cyclical variation
    • Residual variation
    • Seasonal variation

  7. Which variation causes predictable, regular fluctuations in sales within a single twelve-month period?

    • Seasonal variation
    • Cyclical variation
    • Random variation
    • Trend variation

  8. What relationship exists when an increase in marketing spending leads to a proportional increase in sales volume?

    • Positive correlation
    • Cyclical variation
    • Zero correlation
    • Negative correlation

  9. Sales in year 3 are £500,000 and the trend value is £460,000. What is the cyclical variation?

    • -£40,000
    • £40,000
    • £400,000
    • £960,000

  10. Sales for three consecutive years are £10m, £12m and £14m. What is the three-year moving average?

    • £36m
    • £11m
    • £12m
    • £13m

  11. A business predicts sales using historical numerical data and statistical time series models. Which method is this?

    • Quantitative forecasting
    • Delphi technique
    • Intuition
    • Qualitative forecasting

  12. A management team holds a rapid, unstructured group meeting to generate immediate product demand ideas. Which method is used?

    • Regression analysis
    • Brainstorming
    • Time series analysis
    • Delphi technique

  13. Base trend forecast for Q4 is £200,000. The expected seasonal variation is -£15,000. What is the final forecast?

    • £230,000
    • £185,000
    • £200,000
    • £215,000

  14. An entrepreneur sets future sales targets purely based on personal gut feeling and experience. Which method is this?

    • Moving average
    • Delphi technique
    • Intuition
    • Correlation

  15. Forecast revenue is £800,000 and forecast total costs are £650,000. What is the forecast profit?

    • £250,000
    • £150,000
    • £1,450,000
    • £50,000

  16. As prices rise, consumer demand for a non-essential product consistently falls. What relationship does this show?

    • Positive correlation
    • Zero correlation
    • Negative correlation
    • Random variation

  17. What is a major limitation of relying exclusively on time series analysis for business forecasting?

    • Ignores unexpected events
    • Highly subjective
    • Uses numerical data
    • Eliminates seasonality

  18. Why might a business choose the Delphi technique over traditional face-to-face qualitative panel meetings?

    • Removes all uncertainty
    • Faster to complete
    • Uses secondary data
    • Prevents dominant personalities

  19. Why do trade suppliers closely examine a customer firm’s accurate cash flow forecast?

    • Determines tax liability
    • Measures employee morale
    • Evaluates product quality
    • Assesses payment ability

  20. Why does extrapolation become increasingly unreliable when forecasting further into the future?

    • Averages become even
    • Calculations become illegal
    • Data becomes larger
    • External conditions change

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