In order to raise revenue in the city of Hamlet, the city considered assessing a local tax on food served in restaurants. When forecasting the amount of revenue that would be generated by the new tax, the budget officials suggested that about 10% of current customers would likely quit eating out in Hamlet and drive to the nearest town. This is an example of

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Business

Imogen

28 May, 19:41

In order to raise revenue in the city of Hamlet, the city considered assessing a local tax on food served in restaurants. When forecasting the amount of revenue that would be generated by the new tax, the budget officials suggested that about 10% of current customers would likely quit eating out in Hamlet and drive to the nearest town. This is an example of

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Justice Rose · Answer 1

Dynamic forecasting

Explanation:

Dynamic forecasting occurs when present forecast is made based on previous forecasts on the value of dependent variable.

On the other hand static forecasting is when actual previous vales to make present forecast.

Budget officials suggested that about 10% of current customers would likely quit eating out in Hamlet and drive to the nearest town

So a forecast is made on previous forecast.