A manufacturer of entertainment centers uses the completion of new homes as part of their demand forecast. They consider that for every five homes that cost over $300,000 in the city, they make one sale. For every 20 new homes that cost over $150,000 but less than $300,000 in the city, they make one sale. Their projected demand for the future period, before they consider home sales, is for six entertainment centers. They now receive home figures of ten new homes of over $300,000 and 40 new homes of $150,000-$300,000. What should their new forecast be?

A manufacturer of entertainment centers uses the completion of new homes as part of their demand forecast. They consider that for every five homes that cost over $300,000 in the city, they make one sale. For every 20 new homes that cost over $150,000 but less than $300,000 in the city, they make one sale. Their projected demand for the future period, before they consider home sales, is for six entertainment centers. They now receive home figures of ten new homes of over $300,000 and 40 new homes of $150,000-$300,000. What should their new forecast be?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 8E: Bell Greenhouses has estimated its monthly demand for potting soil to be the following: N=400+4X...

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Divergence happens when the price of an asset and the indicator moves to same directions