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What is the forecasted sale of ice cream in the month of November using the 4-period moving averages?
Month Sales($) Month Sales($)

January 500
February 800
March 800
April 1,000
May 1,200
June 2,000
July 2,200
August 1,800
September 1,500
October 1,200

The forecasted sale for the month of November is __$

Answer 1

The forecasted sale for the month of November is $1,675.

Explanation:

A moving average can be described as a series of averages of different subsets that is calculated from the full data set.

Using the 4-period moving averages to calculate the forecasted sale of ice cream in the month of November therefore implies the average of sale of ice cream in the 4 months preceding November. And these 4 months are July, August, September, and October.

Therefore, we have:

Forecasted sale for the month of November = (Sales in July + Sales in August + Sales in September + Sales in October) / 4 = ($2,200 + $1,800 + $1,500 + $1,200) / 4 = $6,700 / 4 = $1,675