The sales data over the last 10 years for the Acme Hardware Store are as follows:

a. Calculate the compound growth rate for the period of 2003 to 2012.
b. Based on your answer to part a, forecast sales for both 2013 and 2014.
c. Now calculate the compound growth rate for the period of 2007 to 2012.
d. Based on your answer to part c, forecast sales for both 2013 and 2014.
e. What is the major reason for the differences in your answers to parts 6 and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Transcribed Image Text:

2003 2004 2005 2006 2007 $230,000 276,000 328,000 388,000 453,000 2008 2009 2010 2011 2012 526,000 605,000 690,000 779,000 873,000