A retailer recorded monthly sales (in thousand rupees) for the last four months as follows: Jan – 120, Feb – 150, Mar – 130, Apr – 160. Using the simple average method, forecast the sales for May. What is the forecasted amount?

Step-by-step solution

1. Add the four monthly sales figures: $120+150+130+160=560$ (thousand rupees).
2. Divide the total by the number of months (4) to get the average: $560÷4=140$ (thousand rupees).
3. Convert the average to rupees: $140\times 1,000=\text{Rs. }140,000$.
4. State that the forecasted sales for May are $\text{Rs. }140,000$.

Concept tested: Simple average forecasting

Published 1 October 2026 · How this solution was prepared and checked