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 if it was determined that years 2008 and 2009 were "stale"?

Question

Quizplus · Accepted Answer

To use the average approach, we need to take an average of the non-stale years' sales figures:

Average = (2010 + 2011 + 2012 + 2013 + 2014) / 5
Average = 2,833,333

Therefore, the forecast for next year's sales using the average approach would be $2,833,333. Choice C is the correct answer.

Suppose a Firm Has Had the Historical Sales Figures Shown