The manager of a residential construction business plans to build more houses next year because interest rates are falling and more people will be able to afford new homes. This plan is an example of [{Blank}] . A) benchmarking B) contingency planning C)

The correct answer is C) forecasting. Forecasting is the process of making relevant predictions about future events based on historical data and analysis of trends. In this case, the manager is using the information about falling interest rates to predict that more people will be able to afford new homes. This prediction is based on analysis of trends and historical data and is therefore an example of forecasting. Benchmarking refers to the process of comparing one's business or practices to the industry standards. Contingency planning and simulation are different types of planning used for emergency situations and testing respectively.