The purpose of this exercise is to gain some insight into making forecasting decisions.
Suppose that I plan to buy chocolate chip cookies from a bakery and bring them to the next class to sell. Each cookie costs 75 cents to purchase. I plan to sell them for a dollar each.
Please note: When answering the questions, there are 29 students.
1. Estimate how many I should purchase in order to maximize profit. Briefly explain your logic.
2. What factors would cause you to change your forecast? (For example, does the day of the week, time of the class, or season of the year affect the forecast?)
3. Would your forecast differ if the selling price changed? How?
4. Would your forecast differ in a post-COVID environment? How?
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