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ACCT 556 Week 2 Homework Assignment
The Schonlind Company has gathered information regarding past
sales:
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.