What will be the forecast for the month of October using a 3-period moving average and weights of 0.2,0.3 and 0.5,if the demand during the months of May,June,July,August and September was 200,180,210,200 and 220 respectively? (The desire is to have the most recent data influence the forecast most strongly. )
A)200
B)207
C)212
D)225

Question

Quizplus · Accepted Answer

The forecast for October using a weighted moving average is calculated as follows: (0.5 * 220) + (0.3 * 200) + (0.2 * 210) = 110 + 60 + 42 = 212.

What Will Be the Forecast for the Month of October