Question

The sale data is shown as follows:

Month 1: 11

Month 2: 52

Month 3: 95

Using Weighted Simple Moving Average method (Month 1: 0.2; Month 2: 0.3; Month 3: 0.5) to forecast the sales of Month 4: ________ (Round your answer to the nearest integer)

Answer 1

To forecast the sales of Month 4 using the Weighted Simple Moving Average method, multiply each month's sales data by their corresponding weights and sum the results. The forecasted sales for Month 4 is approximately 67.

Step-by-step explanation:

To forecast the sales of Month 4 using the Weighted Simple Moving Average method, we need to multiply each month's sales data by their corresponding weights and then sum the results. The weights for Month 1, Month 2, and Month 3 are 0.2, 0.3, and 0.5, respectively.

So, the forecasted sales for Month 4 would be:

Month 4 forecast = (Month 1 sales * Month 1 weight) + (Month 2 sales * Month 2 weight) + (Month 3 sales * Month 3 weight)

Month 4 forecast = (11 * 0.2) + (52 * 0.3) + (95 * 0.5)

Month 4 forecast ≈ 3.5 + 15.6 + 47.5

Month 4 forecast ≈ 66.6

Therefore, the forecasted sales for Month 4 is approximately 67.