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A business wishes to forecast next year’s sales for the budget.Next year is 2007.Sales are seasonal,summer and winter.
seasonal sales for past 7 years have been as follows:20X4 SUMR:124 WIN:70
20X5 SUMR:230 WIN:180
20X6 SUMR: 310 WIN:270
20X7 SUMR: 440 WIN:360
20X8 SUMR: 520 WIN:470
20X9 SUMR: 650 WIN:REQUIRED:
A)Calculate trend line based on a two season moving average.
B)Calculate the average increase in sales each season.
C)Calculate seasonal variation in sales.
D)Use this data to prepare a sales forecast for each season in 20Y0.|=Centre the moving average(Trend) from 20X4 -20X8 is: 123.5/177.5/225.0/267.5/322.5/377.5/420.0/467.5/527.5
|=The average increase in sales each season in the trend line is:
(527.5 -123.5) / 8= 50.5 each seasoonMy curiosity are:
1.There is only 6 years given not 7 years!
2.Why there is no calculation of winter 20×8 and summer 20×9 trend?
3. Why 123.5 substruct from 527.5? and can’t understand the calculation of 8 season!Thank You.
I have no idea where you found this question, and therefore I cannot help you with your question 1 – assuming you have copied the question correctly, it would seem they have made a mistake!
For the same reason, I cannot help with your second question.
As far as your third question is concerned, from 123.5 to 177.5 is one increase; from 177.5 to 225.0 is a second increase, and so on. If you carry on counting then you will find that there are 7 increases.
I FOUND THE QUESTION FROM KAPLAN 2014-15. If this is not correct then please tell me how will be the ques??
and
thank you to make me understand about the increase but i think there is 8 increase!Thank You.
I do not have the Kaplan kit and so I cannot help you on that.
With regard to you other question, you are correct – there are 8 increases (I am really sorry – I mistyped before by accident). Because there are 8 increases and the total difference between the first and the last is 527.5 – 123.5, they have divided by 8 in order to get the average increase per season.
I apologise for confusing you with the mistyping 🙁
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