Your goal is to sell jogging shoes to those 65 and other who live in Florida. Here is some information you have collected: (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida. (3) Florida attracts 20% of all people who move when they retire. (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older. (5) You estimate that your sales will increase by 25% in year 2.
-Which of the following piece(s)of information would be used to forecast your demand for year 2?
A)3 million joggers who are 65 or older
B)Your estimate that you will capture 2 percent of the Florida joggers in year 1.
C)Your estimate that your sales will increase by 25% in year 2
D)Both b and c

Question

Your goal is to sell jogging shoes to those 65 and other who live in Florida.  Here is some information you have collected:  (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida.  (3) Florida attracts 20% of all people who move when they retire.  (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older.  (5) You estimate that your sales will increase by 25% in year 2.
-Which of the following piece(s)of information would be used to forecast your demand for year 2?
A)3 million joggers who are 65 or older
B)Your estimate that you will capture 2 percent of the Florida joggers in year 1.
C)Your estimate that your sales will increase by 25% in year 2
D)Both b and c

Quizplus · Accepted Answer

To forecast demand for year 2, you need to know your initial capture rate (2 percent of Florida joggers) and the expected growth rate (25% increase in year 2).

Your Goal Is to Sell Jogging Shoes to Those 65