Answer:
June forecast = 680
Step-by-step explanation:
Since we are required to use two period weighted moving average, the forecast for June can be calculated using the following formula:
June forecast = (April figure * Weight for April) + (May figure * Weight for May) ....... (1)
Where;
April figure = 500
Weight for April = 0.4
May figure = 800
Weight for May = 0.6
Substituting the values into equation (1), we have:
June forecast = (500 * 0.4) + (800 * 0.6) = 200 + 480 = 680