IB Business Management HL Practice Test 2026 – The Comprehensive All-in-One Guide for Exam Success!

The idea being tested is forecasting demand using past data. A forecast based on average past demand uses a moving average, which takes the average of a set number of previous periods and uses that value as the next period’s forecast. This smooths out random fluctuations and works best when demand is relatively stable, with no strong trend or obvious seasonality. If demand shows a trend or seasonal patterns, more advanced forms like weighted or exponential smoothing might be used to place more emphasis on recent data. The other terms relate to market position or marketing functions rather than a method for predicting future demand from historical figures.