Question

Jim is a minor manufacturer. He needs to know the forecasted sales for September to formulate a plan in advance. What is his forecasted sale using simple average

method?
Month Sales ($)
January 3,000
February 3,500
March 4,000
April 4,500
May 3,000
June 3,500
July 4,204
August 5,000

Answer 1

$3838

Explanation:

The mean of the given numbers is their sum divided by the number of them:

mean = (3000 +3500 +4000 +4500 +3000 +3500 +4204 +5000)/8

= 30704/8 = 3838

If Jim is using this mean for his forecast, then his forecasted sales is $3838.