Question

Mary, Susan, and Sarah are running a beach boutique on the board walk of Ocean City. Their favorite product is a red lifeguard hoody. Mary believes it will sell 341 times next season. Susan forecasts sales of 535, and Sarah forecasts 199 What would be the result of a simple forecast combination? (Round to two decimal places)

Answer 1

Answer:

358.33 times

Explanation:

The computation of the simple forecast combination is shown below:

= (Forecast sales done by Mary + Forecast sales done by Susan + Forecast sales done by Sarah) ÷ (Total number of observations)

= (341 + 535 + 199) ÷ (3)

= (1,075)  ÷ (3)

= 358.33 times

We simply divided the total sales forecasted done by each one by the total number of observations