Suppose a firm has had the historical sales figures shown as follows. What would be the forecast for next year's sales using the average approach?
$$\begin{array} { c c c c c c }
\text { Year } & 2013 & 2014 & 2015 & 2016 & 2017 \
\text { Sales } & \$ 10,000,000 & \$ 10,500,000 & \$ 10,700,000 & \$ 11,000,000 & \$ 12,000,000
\end{array}$$
A) $10,000,000
B) $10,550,000
C) $10,840,000
D) $12,000,000

Question

Suppose a firm has had the historical sales figures shown as follows. What would be the forecast for next year's sales using the average approach?
$$\begin{array} { c c c c c c } 
\text { Year } & 2013 & 2014 & 2015 & 2016 & 2017 \
\text { Sales } & \$ 10,000,000 & \$ 10,500,000 & \$ 10,700,000 & \$ 11,000,000 & \$ 12,000,000
\end{array}$$
A) $10,000,000
B) $10,550,000
C) $10,840,000
D) $12,000,000

Quizplus · Accepted Answer

The average sales over the five years is calculated as: $(\$10,000,000 + \$10,500,000 + \$10,700,000 + \$11,000,000 + \$12,000,000) / 5 = \$54,200,000 / 5 = \$10,840,000$.

Suppose a Firm Has Had the Historical Sales Figures Shown