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?
$$\begin{array} { l l l c l l l }
\text { Year } & 2013 & 2014 & 2015 & 2016 & 2017 \
\text { Sales } & \$ 50,000 & \$ 100,000 & \$ 110,000 & \$ 150,000 & \$ 165,000
\end{array}$$
A) $115,000
B) $140,000
C) $165,000
D) $180,000

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?
$$\begin{array} { l l l c l l l } 
\text { Year } & 2013 & 2014 & 2015 & 2016 & 2017 \
\text { Sales } & \$ 50,000 & \$  100,000 & \$ 110,000 & \$ 150,000 & \$ 165,000
\end{array}$$
A) $115,000
B) $140,000
C) $165,000
D) $180,000

Quizplus · Accepted Answer

To forecast next year's sales using the average approach, you add up all the past sales figures and divide by the number of years. So, $(50,000 + 100,000 + 110,000 + 150,000 + 165,000) / 5 = 575,000 / 5 = $115,000.

Suppose a Firm Has Had the Historical Sales Figures Shown