Question

The data for the number of hand-held gaming devices sold for the past 5 weeks are 15 units, 20 units, 25 units, 30 units, and 17 units respectively. The time series appears to be relatively stable, without trend, seasonal, or cyclical effects; thus, a moving average model would be appropriate. Setting k = 3 the three-period moving average forecast for week 6 is ________.

Answer 1

The three period moving average forecast for week 6 is 24.

Explanation:

the moving average forecast for period 6 is given by the sum of last three week data and divide it by three.

the sum of last three week data is 25+30+17=72

thus the forecast for 6 week = 72/3 = 24