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Suppose sales were $28,873, $35,626, and $47,689 for the years 2000, 2001, and 2002, respectively. Compute the annual growth rate in sales for 2001 and 2002.
Compute the arithmetic average growth rate based on the annual growth rate calculations. Using the arithmetic average growth rate, compute the forecast for sales for 2003.
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Solution Preview
Year Sales % increase
2001 $28,873
2002 $35,626 …
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