Question

Year 1 2 3 4 5 6 7 8

Demand 320 280 260 250 300 330 380 290

Using the information above, forecast the demand for Year = 9 using:

a) 4-period moving average

Answer 1

The forecasted demand for Year 9 using a 4-period moving average is calculated by averaging the demand from Year 5 through Year 8, resulting in a forecast of 325.

Step-by-step explanation:

To forecast demand for Year 9 using a 4-period moving average, we take the average of the demand from the last four years provided (Years 5 through 8). Calculating this, we have:

(Year 5 + Year 6 + Year 7 + Year 8) / 4 = (300 + 330 + 380 + 290) / 4 = 1300 / 4 = 325

So, the forecasted demand for Year 9 using a 4-period moving average is 325.