Question: 1. Predict the sales for 20X9 using the moving average method. Year Sales 20X2 $450,000 20X3 $385,000 20X4 $495,000 20X5 $720,000 20X6 $680,000 20X7 $590,000

1. Predict the sales for 20X9 using the moving average method.

Year Sales

20X2 $450,000

20X3 $385,000

20X4 $495,000

20X5 $720,000

20X6 $680,000

20X7 $590,000

20X8 $620,000

$562,857

projection using the moving average method.

Year Sales

20X2 $450,000

20X3 $385,000

20X4 $495,000

20X5 $470,000 ($720,000-$250,000)

20X6 $680,000

20X7 $590,000

20X8 $620,000

$527,143

  1. Predict the 20X9 sales using exponential smoothing.
  2. Predict the 20X9 using a trend line technique using (GROWTH function in Excel).
  3. Predict the sales for 20X9 using a graphing technique.
  4. It has been suggested that sales for the company may be connected to disposable income. Using the information below regarding historical disposable income, predict the sales for 20X9 using regression analysis if a reliable prediction for disposable income for 20X9 is $45,720.

Year/Sales

20X2$36,200

20X3$37,140

20X4$38,120

20X5$38,450

20X6$41,190

20X7$43,220

20X8$42,850

5Which method do you think provides the most realistic sales projections for 20X9? Why?

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