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 is determined that none of the years are "stale"?

A)$1,600,000
B)$1,660,000
C)$1,700,000
D)$1,800,000

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 if it is determined that none of the years are "stale"?

A)$1,600,000 
B)$1,660,000 
C)$1,700,000 
D)$1,800,000

Quizplus · Accepted Answer

To calculate the forecast for next year's sales using the average approach, we need to take the average of the historical sales figures.
Average sales = (1,400,000 + 1,500,000 + 1,800,000 + 1,700,000 + 1,600,000) / 5 = 1,600,000
Therefore, the forecast for next year's sales using the average approach would be $1,600,000.

Suppose a Firm Has Had the Historical Sales Figures Shown