Question
The XYZ Energy Corporation explores for and produces oil and gas. Company President, Megan, wants to have her companys analyst forecast the companys sales for
The XYZ Energy Corporation explores for and produces oil and gas. Company President, Megan, wants to have her companys analyst forecast the companys sales for 2021. This will be an important forecast since XYZs restructuring plans have hit a snag. The data are represented below:
Year | Sales per share | Year | Sales per share |
1995 | 0.93 | 2008 | 5.33 |
1996 | 1.35 | 2009 | 8.12 |
1997 | 1.48 | 2010 | 10.65 |
1998 | 2.36 | 2011 | 12.06 |
1999 | 2.45 | 2012 | 11.63 |
2000 | 2.52 | 2013 | 6.58 |
2001 | 2.81 | 2014 | 2.96 |
2002 | 3.82 | 2015 | 1.58 |
2003 | 5.54 | 2016 | 2.99 |
2004 | 7.16 | 2017 | 3.69 |
2005 | 1.93 | 2018 | 3.98 |
2006 | 5.17 | 2019 | 4.39 |
2007 | 7.72 | 2020 | 3.52 |
Using a six-year moving average and exponential smoothing, determine the best forecasting method and forecast the sales per share for 2021. Justify your answer. Note that you are the research analyst in this case (hence, you determine the rest of the parameters).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started