Question

A coffee-shop is open Monday through Friday each week. Records for the week show the following numbers of bowls of chili were sold: 160, 140, 135, 185, and 190. Using a three-day moving average, what quantity would the manager recommend be prepared for Monday of the second week?

a. 145
b. 160
c. 162
d. 170

Answer 1

The answer is d. 170 bowls of chili is expected to be sold in the next Monday using three-day moving average.

Step-by-step explanation:

Under three-day moving average technique, the quantity of chili bowls sold in the nearest 03 business day before the projected day, that is Monday are averaged to get the expected number of bowl of chili sold in Monday.

The calculation as below:

Projected bowl of chili sold in Monday = (Actual bowl of chili sold in last Wednesday + Actual bowl of chili sold in last Thursday +Actual bowl of chili sold in last Friday)/3 = (135+ 185+ 190)/3 = 170 bowls of chili.

Thus, the answer is d.