The Simpson Corporation has gathered information regarding past sales of custom t-shirts. YearSales2013 $225,0002014 $193,0002015 $248,0002016 $360,0002017 $340,0002018 $295,0002019 $310,000Answer the following questions.Predict the sales for 2020 using the moving average method.You noticed a sudden jump in sales for 2016. After inquiring about this jump, you were notified by your manager about a one-time special order sale for $60,000 in that year that is not likely to be repeated. What revision, if any, would you make in the sales information used for projection?If you revised your historical sales to be used to project 2020 sales, please recalculate your projection using the moving average method.Which projection (Question 1 or Question 3) do you feel is more representative of the Simpson Corporation's historical sales? Why?

Answered: Predict the sales for 2020 using the…

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 11P: For the Hawkins Company, the monthly percentages of all shipments received on time over the past 12...

See similar textbooks

Related questions

Question

The Simpson Corporation has gathered information regarding past sales of custom t-shirts.

Year	Sales
2013	$225,000
2014	$193,000
2015	$248,000
2016	$360,000
2017	$340,000
2018	$295,000
2019	$310,000

Answer the following questions.

Predict the sales for 2020 using the moving average method.
You noticed a sudden jump in sales for 2016. After inquiring about this jump, you were notified by your manager about a one-time special order sale for $60,000 in that year that is not likely to be repeated. What revision, if any, would you make in the sales information used for projection?
If you revised your historical sales to be used to project 2020 sales, please recalculate your projection using the moving average method.
Which projection (Question 1 or Question 3) do you feel is more representative of the Simpson Corporation's historical sales? Why?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.