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16 March, 12:02

Suppose that you are using the naïve forecasting method with trend to forecast sales. If sales have been declining by 20% per week, and this week's sales amounted to $200, what would your forecast be for next week?

A) $200

B) $ 40

C) $240

D) $180

E) $160

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Answers (1)
  1. 16 March, 14:47
    0
    E) $160

    Explanation:

    The computation is presented below:

    Given that

    Sales declining percentage = 20%

    And this week the sales amounted to $200

    So, by considering the above information, the forecast for the next week is

    = Sales for this week - sales for this week * Sales declining percentage

    = $200 - $200 * 20%

    = $200 - $40

    = $160
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