Question

Xavier would like to determine the Q1 and Q4 forecast for 2020 based on last year's sales. What should Xavier's forecast be if he uses a weighted moving average? Please round your answer.

Answer 1

For Quarter 1, the forecast using weighted moving average is 144.18.
For Quarter 4, the forecast using weighted moving average is 271.68

A weighted moving average is a statistical calculation that assigns different weights to different data points in a time series with more recent data points given higher importance in the calculation.

Quarterly Forecast = Quarterly sales * Quarterly weigh

Based on the table:

For Quarter 1, the forecast using weighted moving average is:

= (157+132+512) * 0.18

= 144.18.

For Quarter 4, the forecast using weighted moving average is:

= (801+201+130) * 0.24

= 271.68

Complete question :-

Answer 2

For Quarter 1, the forecast using weighted moving average is 144.18.

For Quarter 4, the forecast using weighted moving average is 271.68

A weighted moving average is a statistical calculation that assigns different weights to different data points in a time series with more recent data points given higher importance in the calculation.

Quarterly Forecast = Quarterly sales * Quarterly weigh

Based on the table:

For Quarter 1, the forecast using weighted moving average is:

= (157+132+512) * 0.18

= 144.18.

For Quarter 4, the forecast using weighted moving average is:

= (801+201+130) * 0.24

= 271.68