Question

What is the forecast for May based on a three-month weighted moving average applied to the following past demand data and using the weights: .5, .3, and .2 (largest weight is for the most recent data)? Month Demand Forecast January 40 February 45 March 57 April 60 May 75 June 87 Group of answer choices 50.00 66.90 56.10 78.00 61.50

Answer 1

Answer:

c. 56.10

Explanation:

5 + 3 + 2 = 10

Forecast for May

= Weight/Total weight*Monthly demand forecast for most recent data based on a three-month weighted moving average

= (5/10)*60 + (3/10)*57 + (2/10)*45

= 30 + 17.1 + 9

= 56.1

Thus, the forecast for May based on a three-month weighted moving average is 56.1