Videx is the premier firm in the security systems industry. Martha Rameriz is an account manager at Videx responsible for selling residential systems. She is compensated based on beating a predeter-mined sales budget. The last seven years€™ sales budgets and actual sales data follow. Videx sets its sales budgets centrally in a top- down fashion.

Required:a. Martha Rameriz sells $ 908,000 in year 7. What budget will she be assigned for year 8?
b. Suppose Rameriz sells $ 900,000 of systems in year 7. What budget will she be assigned in year8?

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Year Budget Actual Difference $850,000 862,000 884,000 884,000 893,000 893,000 $865,000 888.800 852,000 895,000 $15,000 26,800 -32,000 11,000 6 902.000 9,000 901,000 915,000 Average Standard deviation Median 881,000 18,385 84,000 880,133 18,970 883,400 2.467 21,715 10,000