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You’ve been asked to use the following historical sales information to forecast next year’s sales for...

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Finance

You’ve been asked to use the following historical salesinformation to forecast next year’s sales for Worldwide WidgetManufacturing, Inc. The actual sales for 2016 were $1,950,000.

YearSales
2011$1,750,000
2012$2,000,000
2013$1,350,000
2014$2,250,000
2015$1,800,000

What would be the next year's forecast according to the naïveapproach and the average sales approach? What would be the MAPEaccording to the naïve approach and the average sales approach?

Kindly show all detailed calculations.

Answer & Explanation Solved by verified expert
4.2 Ratings (892 Votes)
Naive forecast is one of the Time Series Model to forecast sale It is simplest methodA nave forecast simply uses the actual demand for the past period as the forecasted demand for the next period Here Forecast for 2016 would be sale of Actual sale of previous year ie 1800000 and forecast for 2017 would be    See Answer
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Transcribed Image Text

You’ve been asked to use the following historical salesinformation to forecast next year’s sales for Worldwide WidgetManufacturing, Inc. The actual sales for 2016 were $1,950,000.YearSales2011$1,750,0002012$2,000,0002013$1,350,0002014$2,250,0002015$1,800,000What would be the next year's forecast according to the naïveapproach and the average sales approach? What would be the MAPEaccording to the naïve approach and the average sales approach?Kindly show all detailed calculations.

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