Question

Using the data set below, what would be the forecast for period 4 using a three period moving average: (Choose the closest answer.) Period wN Actual Demand 10,000 12,400 13,250 15,750 20,500 18,500 O a. 12,244 O b. 11,500 O c. 11,883 O d. 14,008 Using the data set below, what would be the forecast for period 5 using a four period weighted moving average? The weights for each period are 0.05, 0.15, 0-30, and 0.50 from the oldest period to the most recent period, respectively. (Choose the closest answer.) Period Actual Demand 10,000 12,400 13,250 14,750 15,220 18,500 O O O O a. 13,105 b. 13,710 c. 14,610 d. 12,820

Answer 1

Using a three period moving average, we can find the forecast for period 4 by taking the average of periods 1, 2, and 3, and then moving the window forward to periods 2, 3, and 4, and so on. Therefore, the forecast for period 4 would be:

(10,000 + 12,400 + 13,250) / 3 = 11,883.33

So, the closest answer is (c) 11,883.

For the second question:

Using a four period weighted moving average, we can find the forecast for period 5 by taking a weighted average of the four most recent periods, where the weights are 0.05, 0.15, 0.30, and 0.50 for the oldest to the most recent periods, respectively. Therefore, the forecast for period 5 would be:

(0.05 x 10,000) + (0.15 x 12,400) + (0.30 x 13,250) + (0.50 x 14,750) = 13,105

So, the closest answer is (a) 13,105.