Question

A company wants to forecast demand using the simple moving average. If the company uses three prior yearly sales values (i.e., year 2014= 130, year 2015= 110, and year 2016= 160), which of the following is the simple moving average forecast for year 2017?

Answer 1

133.3 is the answer in simple moving average forecast for year 2017.

Step-by-step explanation:

Forecast for 2014 = 130

Forecast for 2015 = 110

Forecast for 2016 = 160

Forecast for 2017 = (130+110+160)/3

= 400/3

= 133.3.

Therefore, 133.3 is the answer in simple moving average forecast for year 2017.