Question

The table below contains actual sales data for the past five days. Compute a 3 day weighted moving average forecast? Use weights .5, .3 & .2 (.5 for the most recent period)

Mon 557
Tue 546
Wed 623
Thu 943
Fri 837

Round your answer to the nearest whole number

Answer 1

To compute the 3-day weighted moving average forecast using the sales data, apply the weights 0.5, 0.3, and 0.2 to the sales data of Friday, Thursday, and Wednesday respectively, then add the results together and round to the nearest whole number, resulting in a forecast of 826 for the next day.

Step-by-step explanation:

To compute a 3-day weighted moving average forecast using the sales data provided, we apply the given weights to the three most recent days. The weights of 0.5, 0.3, and 0.2 correspond to the most recent, second most recent, and third most recent sales data, respectively. Thus, for the days Wednesday (623), Thursday (943), and Friday (837), we calculate as follows:

Weighted Average = (0.5 × 837) + (0.3 × 943) + (0.2 × 623)

Weighted Average = 418.5 + 282.9 + 124.6

Weighted Average = 826 rounded to the nearest whole number.

The 3-day weighted moving average forecast for the next day (Saturday) is 826.