Sales forecasting, budgeting and Monte Carlo budget simulation Refer to the analyses for Exercises 5.2 and 5.3.

Required:

1. Use the sales forecast for Year 37 as the mean of sales, and compute the standard error of the forecast for Year 37. Hint: You might also have to forecast one or more independent variables first.

2. Use Monte Carlo analysis to simulate Pendant’s net profit margin before tax.

3. Discuss the simulated risk that Pendant might be unprofitable in Year 37.