Question

the following chart shows a stores records of coat sales over two years.
if the trend shown in these graphs stays constant, what percent of the market will parkas occupy in 2008? (round your answer to the nearest tenth.)
a. 16.5%
b. 19.0%
c. 21.9%
d. 35.7%

Explanation:

Calculate total sales and parka market share for 2006

Using the Percentage Decrease and Percentage Increase knowledge points

$$ \text{Total 2006} = 297 + 210 + 213 + 137 + 103 = 960 $$

$$ \text{Parka Share 2006} = \frac{210}{960} = 0.21875 \quad (21.875\%) $$

Calculate total sales and parka market share for 2007

Using the Percentage Decrease and Percentage Increase knowledge points

$$ \text{Total 2007} = 223 + 210 + 285 + 259 + 127 = 1104 $$

$$ \text{Parka Share 2007} = \frac{210}{1104} \approx 0.190217 \quad (19.0217\%) $$

Determine the constant trend and project for 2008

Using the Percentage Decrease and Percentage Increase knowledge points

$$ \text{Difference} = 19.0217\% - 21.875\% = -2.8533\% $$

$$ \text{Parka Share 2008} = 19.0217\% - 2.8533\% \approx 16.168\% $$

Alternatively, calculating the percentage change in market share:

$$ \text{Relative Change} = \frac{19.0217\% - 21.875\%}{21.875\%} \approx -0.13043 \quad (-13.043\%) $$

$$ \text{Parka Share 2008} = 19.0217\% \times (1 - 0.13043) \approx 16.54\% \approx 16.5\% $$

Answer:

• (a) 16.5% (Correct answer)
• (b) 19.0%
• (c) 21.9%
• (d) 35.7%