*Use the weighted average method of forecasting for their business. They are 70%
ID: 3252279 • Letter: #
Question
*Use the weighted average method of forecasting for their business. They are 70% confident that sales from last year will be reflective of this year, 20% from 2 years ago, and 10% from 3 years ago. Using the sumproduct function, calculate the forecast for 2017 (next year).
Item 2014 Sales $ 2015 Sales $ 2016 Sales $ Total Item Sales 1 $20,000.00 $22,000.00 $25,000.00 $67,000.00 2 $30,000.00 $35,000.00 $36,000.00 $101,000.00 3 $40,000.00 $43,000.00 $46,000.00 $129,000.00 4 $50,000.00 $53,000.00 $54,000.00 $157,000.00 Total Yearly Sales $140,000.00 $153,000.00 $161,000.00Explanation / Answer
Forecast for total sales for 2017
= 161000 (0.70) + 153000 (0.20) + 140000 (0.10)
= 157300
Hence,
Forecast for 2017 sales is $157300
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