The Schonlind Company has gathered information regarding past sales: Year Sales 1999 $300,000 2000 225,000 2001 325,000 2002 650,000 2003 540,000 2004 675,000 2005 825,000 Required: 1. Predict the sales for 2006 using the moving average method. 2. You noticed a sudden jump in sales in 2002. After inquiring about this jump, you were told that there was a one-time sale for $200,000 in that year that is not likely to be repeated. What revision, if any, would you make in the sales information used for projection? 3. If you revised you historical sales to be used to project 2006 sales, recalculate your projection using the moving average method. 4. Which projection (question 1 or question 3) do you feel is more representative of the Schonlind Company?s historical sales? Why? Please complete the remaining questions using the revised historical data. 5. Predict the sales for 2006 using exponential smoothing. 6. Predict the sales for 2006 using a trend line technique using. (GROWTH function in Excel). 7. Predict the sales for 2006 using a graphing technique. 8. It has been suggested that sales for the company may be connected to disposal income. Using the information below regarding historical disposable income, predict the sale for 2006 using regression analysis if a reliable prediction for disposable income for 2006 is $35,430. Year Disposable Income 1999 $24,190 2000 26,194 2001 27,466 2002 29,994 2003 33,467 2004 36,348 2005 35,700 9. Which method do you think provides the most realistic sales projections for 2006? Why?

AC556 Week 2 Problem Sales Forecasting NOTE: It is expected that this problem will be completed using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Schonlind Company has gathered information regarding past sales: Year 1999 2000 2001 2002 2003 2004 2005 Sales $300,000 225,000 325,000 650,000 540,000 675,000 825,000 Required: 1. Predict the sales for 2006 using the moving average method. 2. You noticed a sudden jump in sales in 2002. After inquiring about this jump, you were told that there was a one-time sale for $200,000 in that year that is not likely to be repeated. What revision, if any, would you make in the sales information used for projection? 3. If you revised you historical sales to be used to project 2006 sales, recalculate your projection using the moving average method. 4. Which projection (question 1 or question 3) do you feel is more representative of the Schonlind Company's historical sales? Why? Please complete the remaining questions using the revised historical data. 5. Predict the sales for 2006 using exponential smoothing. 6. Predict the sales for 2006 using a trend line technique using. (GROWTH function in Excel). 7. Predict the sales for 2006 using a graphing technique. 8. It has been suggested that sales for the company may be connected to disposal income. Using the information below regarding historical disposable income, predict the sale for 2006 using regression analysis if a reliable prediction for disposable income for 2006 is $35,430. Year Disposable Income 1999 $24,190 2000 26,194 2001 27,466 2002 29,994 2003 33,467 2004 36,348 2005 35,700 9. Which method do you think provides the most realistic sales projections for 2006? Why