Using the data set below, what would be the forecast for period 4 using a three period moving average: (Choose the closest answer.)
A) 11500
B) 11883
C) 12244
D) 14008

Question

Using the data set below, what would be the forecast for period 4 using a three period moving average: (Choose the closest answer.) 
A) 11500 
B) 11883 
C) 12244 
D) 14008

Quizplus · Accepted Answer

To calculate the three period moving average, we take the average of the last three data points. 
For Period 4, the last three data points are 11600, 11900, and 11800. 
Therefore, the three period moving average for Period 4 would be (11600 + 11900 + 11800) / 3 = 11833.33. 
The closest answer to this calculated value is B, which is 11883.

Using the Data Set Below, What Would Be the Forecast