A firm has the following order history over the last 6 months.
January 120
February 95
March 100
April 75
May 100
June 50
a) 75
b) 72.5
c) 50
d) 90
e) 106.5
Answer: b) 72.5
Solution:
Ct At CtAt
April .3 75 22.5
May .3 100 30
June .4 50 20
Forecast 72.5
January 120
February 95
March 100
April 75
May 100
June 50
What would be a 3-month weighted moving average forecast for July, using weights of 40% for the most recent month, 30% for the month preceding the most recent month, and 30% for the month preceding that one?
a) 75
b) 72.5
c) 50
d) 90
e) 106.5
Answer: b) 72.5
Solution:
Ct At CtAt
April .3 75 22.5
May .3 100 30
June .4 50 20
Forecast 72.5