Question

The Taco Barn After tallying the receipts for their first year of operation, the owners of the Taco Barn are encouraged. Sales of their artisnal tacos, made from such exotic ingredients as ground beef, cheese, and beans, have been strong and seem to give hope to the coming year. Taco sales by month are shown in the table.

Month Sales
January 474
February 485
March 501
April 588
May 579
June 673
July 594
August 679
September 608
October 699
November 732
December 732


Armed only with his fingers, the owner decides that the safest forecasting approach is a moving average of two periods. His fingers are aching by the time he reaches May and he is worried about his ability to stuff tacos during tomorrowʹs dinner rush. Help him out by finding the forecast for June.

A) 583.5
B) 626
C) 673
D) 544.5

Answer 1

The forecast for June's taco sales using a moving average of two periods is 583.5.

Step-by-step explanation:

To forecast the sales for June using a moving average of two periods, we add the sales from the two months prior to June (April and May) and divide by two. So, we calculate:

• April Sales: 588
• May Sales: 579
• Average: (588 + 579) / 2 = 583.5

Therefore, the forecast for June, using a two-period moving average, is 583.5.

To forecast the sales for June using a moving average of two periods, first, we need to calculate the average of the sales for May and June. The sales in May were 579 and in June were 673. Adding these two numbers together and dividing by 2, we get (579 + 673) / 2 = 626. Therefore, the forecasted sales for June is 626.