136k views
3 votes
Actual demand for a product for the past three months was

Three months ago 375 units
Two months ago 325 units
Last month 335 units

A. Using a simple three-month moving average, make a forecast for this month

User Rob Rose
by
7.9k points

1 Answer

6 votes

Final answer:

The forecast for this month using a simple three-month moving average, based on the demand for the past three months, would be 345 units.

Step-by-step explanation:

The subject of this question is Mathematics, specifically concerning the calculation of forecasts using a simple three-month moving average. To make a forecast for this month using the given actual demand for the product for the past three months, we need to calculate the average of these three months' demands.

Adding the demand for the three months gives us 375 units (three months ago) + 325 units (two months ago) + 335 units (last month) = 1035 units. The three-month moving average would then be 1035 units divided by 3, which equals 345 units. Therefore, the forecast for this month using a simple three-month moving average would be 345 units.

User MattiasF
by
8.3k points