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The following table lists your company's sales during the last four years.
Year 1
Year 2
Year 3
Year 4
Sales
100
110
105
120
a. A fellow manager points to the 15-unit increase between year 3 and year 4. Extrapolating this trend, he predicts 135 units will be sold in the coming year (year 5). Do you agree? Explain.
b. A second manager notes that annual sales increases have averaged (120 - 100)/3 = 6.67 units per year. Accordingly, his forecast for the coming year is 126.67 units sold. Do you agree with this prediction? Explain.
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