Question 32 pts Since taking over Nina has been very concerned about the future sales potential. She knows that if she doesn’t reach a certain sales level by the end of the next year the bank will cal

  

Question 32 pts
Since taking over Nina has been very concerned about the future sales potential. She knows that if she doesn’t reach a certain sales level by the end of the next year the bank will call in all of their debt. She is working on the forecasts and has put together a forecasting model that incorporates all of the history for sales since the factory was retrofitted with the latest high volume equipment. Given this information she is trying to predict the sales for the next year. She went through the entire process of comparing different methods and settled on weighted moving average with two averaging periods. Sales for the past six years since the new equipment was in place were:
Year
Sales
2013
18857
2014
22392
2015
15983
2016
13328
2017
28796
2018
17357
She determined that the best possible weight to apply to the most recent period was 0.64 so the weight for the other period is whatever is necessary for the two weights to add to 1.0. What will be the forecast for 2019?

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