Final answer:
The forecast for May's lawn mower sales is 1,013 units, calculated by assigning weights of 0.5, 0.3, and 0.2 to the sales figures of April, March, and February respectively and summing the weighted averages.
Step-by-step explanation:
The question involves calculating a 3 month weighted moving average (WMA) to forecast May's lawn mower sales based on historical sales data. Given the weights of 0.5 for the most recent period (April), 0.3 for the next period (March), and 0.2 for the oldest period (February), we can use the actual sales figures provided to calculate the forecast.
For April, the actual sales were 1,108. Multiply this by the weight of 0.5: (1,108 × 0.5) = 554.
For March, the actual sales were 983. Multiply this by the weight of 0.3: (983 × 0.3) = 294.9.
For February, the actual sales were 822. Multiply this by the weight of 0.2: (822 × 0.2) = 164.4.
Sum the weighted sales to get the weighted average: 554 + 294.9 + 164.4 = 1,013.3.
Therefore, the weighted moving average forecast for May's lawn mower sales is 1,013 units.