A company wants to forecast demand using the simple moving average. The company uses four positive prior yearly (2014, 2015, 2016 and 2017) sales values. All yearly sales figures are unique (no repetitions). Which of the following is most accurate about the moving average forecast for year 2018?
A. Has to be smaller than at least one of the four yearly sales figures.
B. Has to be larger than at least one of the four yearly sales figures.
C. Has to be between the smallest and largest yearly sales figures.
D. Has to greater than all four yearly sales figures.
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice A, B and C only

Question

A company wants to forecast demand using the simple moving average. The company uses four positive prior yearly (2014, 2015, 2016 and 2017) sales values. All yearly sales figures are unique (no repetitions). Which of the following is most accurate about the moving average forecast for year 2018? 
A. Has to be smaller than at least one of the four yearly sales figures.
B. Has to be larger than at least one of the four yearly sales figures.
C. Has to be between the smallest and largest yearly sales figures.
D. Has to greater than all four yearly sales figures.
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice A, B and C only

Quizplus · Accepted Answer

The simple moving average is the average of the four sales figures, so it must be between the smallest and largest values, and thus smaller than at least one and larger than at least one of the four figures.

A Company Wants to Forecast Demand Using the Simple Moving