If a cheese factory was interested in estimating the market potential for a new light cheese and estimated the potential by multiplying a base number (population) by several adjusting percentages (e. g., personal discretionary income per capita, average percentage of discretionary income spent on food, etc.), it would be using the chain-ratio method to estimate market potential.

Question

Justus Velez

Business

6 April, 09:53

If a cheese factory was interested in estimating the market potential for a new light cheese and estimated the potential by multiplying a base number (population) by several adjusting percentages (e. g., personal discretionary income per capita, average percentage of discretionary income spent on food, etc.), it would be using the chain-ratio method to estimate market potential.

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Lilia Frye · Answer 1

True

Explanation:

Generally, a chain-ratio method is a method of estimating the total amount of money to be spent on a particular business in order to achieve marketing targets. Based on the forecast of the factory and the decision to venture into the production of a new cheese product, the chain-ratio method is the best method for the estimation.