Microsoft DP-900 Microsoft Azure Data Fundamentals 01 31Oct2024 - Practice Quiz

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Question 1 of 30

A retail company is analyzing its sales data to optimize inventory management. They have collected data on sales volume, customer demographics, and seasonal trends over the past five years. The company wants to predict future sales and adjust their inventory accordingly. Which of the following approaches would best enable the company to utilize this data effectively for forecasting sales trends?

Implementing a machine learning model that uses historical sales data to identify patterns and predict future sales based on various input features such as seasonality and customer demographics.

Conducting a simple linear regression analysis on the sales data without considering external factors like seasonality or customer demographics.

Utilizing a basic average of past sales figures to estimate future sales without any adjustments for trends or seasonality.

Relying solely on expert opinions and anecdotal evidence from sales staff to make inventory decisions without data analysis.

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