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Do you agree with this prediction

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Reference no: EM13880975

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.

Reference no: EM13880975

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