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hello and welcome to this video on quantitative sales forecasting so in this video were going to look at how we perform time series analysis to make a sales forecast and we do that by calculating a three-point moving average then we use a line of best fit to extrapolate to generate our forecast and then finally we use the average variation approach to adjust our sales forecast stack up with a final forecasted figure so lets go back in time a little bit and remind ourselves what sales forecasting is sales forecasting is a method of predicting future sales using statistical methods why might we do it well we want to make sure we have enough sales in order to ensure good cash flow we might need to make some operational decisions about how we run our business organize our business in order to make sure we can meet our sales forecasts we might need to make sure we have the right number of staff we might also need to think about how were going to ensure that we mark it properly in order