Year Sales

20X2 $450,000

20X3 $385,000

20X4 $495,000

20X5 $720,000

20X6 $680,000

20X7 $590,000

20X8 $620,000

Q:

1. Predict the sales for 20X9 using the moving average method.
2. You noticed a sudden jump in sales for 20X5. After inquiring about this jump, you were notified by your manager about a one-time sale for $250,000 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 your historical sales to be used to project 20X9 sales, please recalculate your projection using the moving average method.
4. Which projection (Question 1 or Question 3) do you feel is more representative of the Gregory Corporation's historical sales? Why?

Please complete the remaining questions using the revised historical data.

5.Predict the 20X9 sales using exponential smoothing.

6.Predict the 20X9 using a trend line technique using (GROWTH function in Excel).

7.Predict the sales for 20X9 using a graphing technique.

8.It has been suggested that sales for the company may be connected to disposable income. Using the information below regarding historical disposable income, predict the sales for 20X9 using regression analysis if a reliable prediction for disposable income for 20X9 is $45,720.

Year Sales

20X2 $36,200

20X3 $37,140

20X4 $38,120

20X5 $38,450

20X6 $41,190

20X7 $43,220

20X8 $42,850

9.Which method do you think provides the most realistic sales projections for 20X9? Why?