Fred's Hardware and Hobby House expects its sales to increase at a constant rate of 6 percent
Question:
A. Complete the following table by forecasting sales for each of the next three years.
Year Forecasted Sales(Dollars)
1 ____________________________
2 _____________________________
3 _____________________________
B. If sales in 2003 were $300,000 and they grew to $500,000 by 2007 (a four-year period), the actual annual compound growth rate was:
10.76%
18.56%
13.62%
C. Which of the following are some of the hazards of employing a constant rate of growth forecasting model? Check all that apply.
It is ill-suited to estimate secular trends._________
It ignores seasonal trends.______________
It assumes that there are no cyclical variations.__________
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris