HOME

TOPICS
HOME

ASSUMP.
TECHNIQUE
HOME

 

Florida State University 
Department of Urban and Regional Planning
Planning Methods III: Forecasting 





Example
Example
Results
Discussion
Questions
 

ASSUMPTION TECHNIQUE
EXAMPLE: KING COUNTY

Example

Using SIC Code data for King County in 1994, we can illustrate the Assumption Technique. In Table 1 are presented the employment figures for the Major Industrial Sectors.
Table 1: King County Employment by Major Industrial Sector, 1994
Industrial Sector
Employment
Agriculture
7,847
Mining
697
Construction
55,146
Manufacturing
179,691
TPU
61,430
Wholesale Trade
67,643
Retail Trade
153,268
FIRE
72,523
Services
239,308
Unclassified
2,744
Total Employment
840,297
In Table 2 we can begin to apply our Assumption Technique. We have assumed that King County's Agriculture, Mining, and Manufacturing sectors are basic and all other sectors are non-basic. This is the most basic application of this Technique.
Table 2: Assumption Technique Applied
Industrial Sector
Employment
Basic or
Non-Basic
Basic
Employment
Non-Basic
Employment
Agriculture
7,847
Basic
7,847
 
Mining
697
Basic
697
 
Construction
55,146
Non-Basic
 
55,146
Manufacturing
179,691
Basic
179,691
 
TPU
61,430
Non-Basic
 
61,430
Wholesale Trade
67,643
Non-Basic
 
67,643
Retail Trade
153,268
Non-Basic
 
153,268
FIRE
72,523
Non-Basic
 
72,523
Services
239,308
Non-Basic
 
239,308
Unclassified
2,744
Non-Basic
 
2,744
Totals
840,297
 
188,235
652,062
In Table 2 we have also calculated totals for our Basic and Non-Basic Sectors so that we can then calculate our Base Multiplier. In Table 2 we see that Basic employment totals 188,235 and Non-basic employment totals 652,062. Using the Base Multiplier formula:
Base Multiplier =
Total Employment Year i
=840,297
=4.46

 

 
Basic Employment Year i
=188,235

 

 

Example Results

  • In this example, King County has a Base Multiplier of 4.46 when calculated using the Assumption Technique.
  • This multiplier estimates that for every one Basic Sector job created, 3.46 Non-basic Sector jobs are created.

Discussion Questions

  • Would an employer like Boeing be pleased with these results? Would this finding help or hinder their argument that they deserve special tax consideration by the county?
  • What problems/limitations do you see with this technique?
  • In the King County example above, data from the Major Industrial Sectors was used. What would happen if the assumption technique were applied at a finer level of data, say, the Three-Digit level? Would some of your assumptions change? How so?
  • Give two examples of how your assumptions would change if you were to use the Assumption Technique for King County at the Three-Digit Level.
Top of the Page