Question

Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6 period time frame:

Period : 1, 2, 3, 4, 5, 6
Demand: 200, 245, 190, 270, 280, 300
Use a 2 period moving average to forecast the demand for period 7.

Answer 1

Forecast demand for period 7 is 290.

Explanation:

The given number of period = 6

Since it is given that in period 1, the demand is 200 and at period 6 the demand is 300. However, to find the forecast demand for period 7, just add the demand of period 1 and period 6, then divide by 2.

Here, the following is the calculation.

Forecast demand for period 7 = (280 + 300) / 2

= 290