Final answer:
The forecast for period 4 using a three-period moving average method is calculated by adding the actual values from periods 1, 2, and 3 and then dividing by 3. This gives the average value which is used as the forecasted value for period 4.
Step-by-step explanation:
The student's question asks for the forecast for period 4 using a three-period moving average method. To calculate a moving average forecast, you typically average a fixed number of previous data points. If we're looking for the forecast of period 4, we would need the actual values from periods 1, 2, and 3. Suppose the values for these periods are A1, A2, and A3, respectively. The forecast for period 4 (F4) using the three-period moving average would be calculated as follows:
- First, sum the actual values of the three previous periods: A1 + A2 + A3.
- Then, divide the result by the number of periods, which is 3 in this case.
The formula would look like F4 = (A1 + A2 + A3) / 3. This result gives us the forecast for period 4. It is important to note that this forecast method assumes that patterns in the data will continue into the future. Actual results can vary due to many factors.