A start-up alternative fuel automobile company has a first, Ask an Expert

Economics

A start-up alternative fuel automobile company has a first year market forecast of 1000 units. Identify the forecasting model that is in use here and explain why it is the obvious choice.
During its first three full years of operation the automobile company had actual sales of:
- Year One: 800 units
- Year Two: 1200 units
- Year Three: 2000 units
- Using a simple three year moving average, calculate the predicted demand for Year Four. Explain your reasoning.
The sales department expects the growth in Year Four to more closely resemble the average growth experienced in the last two years. Predict the number of units expected in Year Four. Discuss whether you would recommend this quantity as the manufacturing plan or the quantity found using the simple three year moving average in step two and why.
In Year Three, one fourth of the production was sold in China. The marketing department has just learned of a new tax that will be imposed on all luxury imports into China beginning in Year Four. It is expected that this will decrease sales to China by 50%. Apply this market intelligence to the simple three year moving average method discussed in step two and recalculate the predicted demand for Year Four. Explain how you arrived at your answer.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91368554
Price:- $40

Guranteed 36 Hours Delivery, In Price:- $40

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question discuss the advantages and disadvantages of

Question: Discuss the advantages and disadvantages of maintaining multiple manufacturing sites as a hedge against exchange rate exposure. The response must be typed, single spaced, must be in times new roman font (size 1 ...

Question the bank of canada defines the canadian money

Question: The Bank of Canada defines the Canadian money supply in terms of Ml+, M1++, M2, M2+, M2++, and M3 monetary aggregates. What financial assets are included in each of these six aggregates? How does each aggregate ...

Question on the television show jeopardy contestants in the

Question: On the television show Jeopardy contestants in the final round must choose some part of their winnings to bet on their answer to an upcoming question, and the winner's bet is added to the amount he has already ...

Question engineering economicassignment submittion due in 8

Question: Engineering Economic Assignment: Submittion due in 8 June 2017 1. Discuss the role of engineering economics in your organization. Identify and describe the nature and types of any two engineering economic decis ...

Question two routes are under consideration for a new

Question: Two routes are under consideration for a new interstate highway segment. The long route would be 25 kilometers and would have an initial cost of $21 million. The short transmountain route would span 10 kilomete ...

Question 1 what are the two or more political views on the

Question: 1. What are the two (or more) political views on the budget deficit/debt? 2. Describe some of the recent political/economic battles over the government budget currently and in recent years (e.g. fiscal cliff, s ...

Question consider an economy with two individuals and two

Question: Consider an economy with two individuals and two goods. Preferences are Leontief and in particular, u1(x, y) = min{2x, y} and u2(x, y) = min{x, 2y} Initial endowments are ?1 = (4, 0) and ?2 = (0, 4) (a) Derive ...

Question as an alternative to uniform pricing a monopolist

Question: As an alternative to uniform pricing a monopolist may engage in price discrimination. There are three general forms. Describe each form of price discrimination and provide a real-world example of each. The resp ...

Question describe the various ways that monetary policy has

Question: Describe the various ways that monetary policy has been used to stimulate growth in various developed economies since the global financial crisis. The response must be typed, single spaced, must be in times new ...

Question if your receive 500 in simple interest on a loan

Question: If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was the interest rate you charged? The response must be typed, single spaced, must be in times new roman font (size ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert