Question

Here are the data for the past 21 months for actual sales of a particular product: LAST YEAR THIS YEAR January 330 295 February 400 360 March 460 365 April 490 475 May 390 405 June 440 355 July 455 335 August 345 290 September 365 325 October 555 November 590 December 530 Develop a forecast for the fourth quarter using a three-quarter, weighted moving average. Weight the most recent quarter 0.50, the second most recent 0.25, and the third 0.25. Do the problem using quarters, as opposed t

Answer 1

Answer:

forecast for the fourth quarter is  1038.75

Step-by-step explanation:

given,

         LAST YEAR THIS YEAR

 January         330       295        

 February  400       360        

 March            460       365        

 April               490       475        

 May                390       405        

 June              440       355        

 July               455       335        

 August          345       290        

 September   365         325        

 October         555        

 November     590        

 December     530

the actual recent quarter sale is

               = 335 + 290 + 325 = 950

the actual sale of second recent quarter

                      = 475 + 405 + 355 = 1,235  

the actual sale of third most recent quarter

                      = 295+360+365

                      = 1020

forecast for the 4th quater using 3-quaters

WMA = 0.5 x 950 + 0.25 x 1235 + 0.25 x 1020

WMA = 1038.75

forecast for the fourth quarter is  1038.75