Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day weighted moving average where the weights are 3 and 1 are
A) 14.5.
B) 13.5.
C) 14.
D) 12.25.
E) 12.75.

Question

Quizplus · Accepted Answer

To calculate the two-day weighted moving average, use the formula: (Weight1 * Demand1 + Weight2 * Demand2) / (Weight1 + Weight2). For the last two days, the demand was 13 and 15. Using weights 3 and 1: (3*15 + 1*13) / (3+1) = (45 + 13) / 4 = 58 / 4 = 14.5.

Daily Demand for Newspapers for the Last 10 Days Has