sales forecasting


Sales forecasting is extremely important for an organization. Using the following information, develop a sales forecast for the next year for this firm using the Naïve Method (formula is Current Year x (Current Year/Previous Year)), the Moving Average Method (using both a two-year and a four-year average), the Exponential Smoothing Method (using an α = 0.2), and a Trend Projection (using Regression). Do you think these methods should all give you the same estimate? Why or why not? Make sure you show your work.

Year

Sales

2016

$750,000

2017

$825,000

2018

$895,000

2019

$975,000

2020

$1,025,000

2021

$1,100,000

2022

?

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