The Costello Music Company has been in business for four years

| August 30, 2017

Question
The Costello Music Company has been in business for four years. Fred Costello, the firm’s

owner, wants to develop a forecast of organ sales for the coming years based on the following historical data:

YearSales($)20121000201320002014400020155000

Forecast sales for 2016 and 2017 using the simple linear trend method.

QUESTION 4

The following table contains yearly data on stock price from 2013 to 2015:

Year

Stock Price

($)

2013

8

2014

12

2015

19

Forecast the 2016 stock price using the simple linear trend method.

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