A bakery recorded the following monthly sales (in units) for the last four months: November – 2000, December – 2400, January – 2200, February – 2600. Using the simple average method, forecast the sales for March.
Answer
2300 units
The correct answer is 2300 units — The forecast for March is units.
Step-by-step solution
- Sum the sales of the last four months: units.
- Divide the total by the number of months to find the average: units.
- The forecast for March is units.
Common mistake: Using the median instead of the mean
Concept tested: Simple average forecasting
Published · How this solution was prepared and checked
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