Question: You are the sales forecaster for a computer store that has nine locations. The stores depend on your projections of future sales in order to
You are the sales forecaster for a computer store that has nine locations. The stores depend on your projections of future sales in order to make decisions on staffing, advertising, purchasing, and the like. All stores are similar in size and merchandise selection. However, sales vary by location due to geographic considerations, differing customer-bases, and random fluctuations. Sales for 2006 were as follows:

You are the sales forecaster for a computer store that has nine locations. The stores depend on your projections of future sales in order to make decisions on staffing, advertising, purchasing, and the like. All stores are similar in size and merchandise selection. However, sales vary by location due to geographic considerations, differing customer-bases, and random fluctuations. Sales for 2006 were as follows: Store 2006 2008 One $12,000,000 Two 11,500,000 Three 11,000,000 Four 10,500,000 Five 10,000,000 Six 9,500,000 Seven 9,000,000 Eight 8,500,000 Nine 8,000,000 Your economic forecasting service has estimated that total sales between 2006 and 2008 should increase by 10% (equivalent to $99,000,000). Your task is to predict 2008 sales for each store. Since your manager believes strongly in the economic forecasting service, it is imperative that your total sales equal $99,000,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
