The data for the number of hand-held gaming devices sold for the past 5 weeks are 15 units, 20 units, 25 units, 30 units, and 17 units respectively. The time series appears to be relatively stable, without trend, seasonal, or cyclical effects; thus, a moving average model would be appropriate. Setting k = 3 the three-period moving average forecast for week 6 is .
A) 20 units
B) 24 units
C) 30 units
D) 17 units

Question

Quizplus · Accepted Answer

To calculate the three-period moving average forecast for week 6, you take the average of the sales from the three most recent weeks. This includes the sales from weeks 4, 5, and 6, which are 30 units, 17 units, and 25 units, respectively. The average of these three numbers is (30 + 17 + 25) / 3 = 72 / 3 = 24 units.

The Data for the Number of Hand-Held Gaming Devices Sold