2.
A) Fred's Hardware and Hobby House expects its sales to increase at a constant rate of 8 percent per year over the next three years. Currents sales are $100,000. Forecast sales for each of the next years.
1st year: 100,000 x 1.08=108,000
2nd year: 108,000 x 1.08=116,640
3rd year: 116,640x 1.08=125,971.20
B) If sales in 2004 were $60,000 and they grew to $100,000 by 2008 (a four year period), what was the actual annual compound growth rate?
The actual annual compound growth rate is found with the formula (FV/PV)^1/n - 1 where FV is the future value, PV is the present value, and n is the number of years. This gives us
(100,000/60,000)^1/4 - 1 =.136, or 13.6%
6. The economic analysis division of Mapco Enterprises estimated the demand functions for its line of weed trimmers as:
Q¬D= 18,000 + 0.4N - 350PM + 90PS
Where N = number of new ...
Solution Summary
Predicting future sales volume based on past sales data from several hypothetical companies
... It is an attempt to develop forecasts through group ... then they combine their conclusions into a forecast. ... Slide 40 40 Qualitative Approaches to Forecasting. ...
... are widely used where repeated forecast required-uses ... average form of time series forecasting-efficient to ... ideal for situations where many forecasts must be ...
... Intermediate-term forecasts should be limited to 1 or 2 ... The Information Needed Since the forecast is based on ... Short-Term Sales Forecasting For a short-term ...
... which involve assessment of the forecast (Hsu and ... the stock leading to closures of demand forecasting gaps ... and further improve accuracy in forecasts along with ...
... a measurement that indicates whether the forecast average is ... with any genuine upward or downward changes in demand. ... need to re-evaluate our forecasting method. ...
... equation for forecasting the student computer demand is formulated as below: Forecast of computers for the next fall = 616.494505 + 26.9054945 (year). ...
... Intermediate-term forecasts should be limited to 1 or 2 years. ... Since the forecast is based on past sales of the company, it is ... Short-Term Sales Forecasting. ...
... consequences of using outside resources for forecasting would be ... 20, I have accepted the mean forecast given by the ... on its own managers for forecasts of demand...
... those in 2000, 2001, and as forecast for 2002 ... public/documents/apcity/unpan001614. pdf+demand+forecasting+for+Qua ... its profit and share price forecasts--in stark ...
