Revenue for the new startup company BCB Excavating for the years 2017 through 2021 have been...
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Revenue for the new startup company "BCB Excavating" for the years 2017 through 2021 have been $543,000, $603,400, $789,000, $845,000, and $889,000 respectively. Year 2017 2018 2019 2020 2021 2022 Revenue ($) 543,000 603,400 789,000 845,000 889,000 (Enter only numbers: no signs, commas, symbols or decimal points) a. Using a simple moving average of the last five years, what revenue would you forecast for 2022? b. Using a weighted moving average with weights of 0.5 for the immediate preceding year (2021) and 0.2, 0.15, 0.1, and 0.05 for the four years prior, what revenue would you forecast for 2022? c. Looking at revenues in 2020 and 2021 ($845,000 and $889,000). What would you forecast for 2022 using exponential smoothing with a weight of 0.6 on actual values? (The forecast is equal to the actual value of the preceding year. d. The company would also like to forecast 2022 revenue, beginning with 2017 (year 0) and assuming a linear relationship with a baseline (or intercept) value of $453,800 and year-to-year change (or slope) of $93,360. What is their forecast using this model? Revenue for the new startup company "BCB Excavating" for the years 2017 through 2021 have been $543,000, $603,400, $789,000, $845,000, and $889,000 respectively. Year 2017 2018 2019 2020 2021 2022 Revenue ($) 543,000 603,400 789,000 845,000 889,000 (Enter only numbers: no signs, commas, symbols or decimal points) a. Using a simple moving average of the last five years, what revenue would you forecast for 2022? b. Using a weighted moving average with weights of 0.5 for the immediate preceding year (2021) and 0.2, 0.15, 0.1, and 0.05 for the four years prior, what revenue would you forecast for 2022? c. Looking at revenues in 2020 and 2021 ($845,000 and $889,000). What would you forecast for 2022 using exponential smoothing with a weight of 0.6 on actual values? (The forecast is equal to the actual value of the preceding year. d. The company would also like to forecast 2022 revenue, beginning with 2017 (year 0) and assuming a linear relationship with a baseline (or intercept) value of $453,800 and year-to-year change (or slope) of $93,360. What is their forecast using this model?
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SOLUTION a To forecast revenue for 2022 using a simple moving average of the last five years we add up the revenue for the last five years and divide ... View the full answer
Related Book For
South western Federal Taxation 2018 Corporations Partnerships Estates and Trusts
ISBN: 978-1337385985
41st edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
Posted Date:
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