The sales data over the last 10 years for the Acme Hardware Store are as follows:
1998 $230,000 2003 $526,000
1999 276,000 2004 605,000
2000 328,000 2005 690,000
2001 388,000 2006 779,000
2002 453,000 2007 873,000
a. Calculate the compound growth rate for the period of 1998 to 2007.
b.Based on your answer to part a, forecast sales sales for both 2008 and 2009.
c.Now calucate the compound growth rate for the period of 2002 to 2007.
d.Based on your answer to part c, forecast sales for both 2008 and 2009.
e.What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast?