An entrepreneur wants to start a bakery. He wants to make a sales forecast for his first six months in business, so he obtains the sales records for all the successful bakeries in his state and uses the monthly average for his forecast. What mistake is he making in this process?
It is not likely that he will be able to match the sales volume of successful, established bakeries in his first six months.
• B. He should be looking at sales records for all the successful bakeries in the country, not just in his state.
• C. He should not use data from bakeries in his own state, as it is unlikely that they will report accurate estimates to their potential competitor.
• D. It is impossible to make an accurate sales forecast for a new business, and attempting to do so will only set him up for failure and disappointment.