A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values , and we want to weight year 2014 at 30 percent, year 2018 at 30 percent, and year 2019 at 40 percent, which of the following is the weighted moving average forecast for year 2020?
A) 170
B) 168
C) 158
D) 152
E) 146

Question

Quizplus · Accepted Answer

To calculate the weighted moving average, multiply each year's sales by its respective weight and sum the results: (Year 2014 sales * 0.30) + (Year 2018 sales * 0.30) + (Year 2019 sales * 0.40). The correct calculation leads to the forecast of 158.

A Company Wants to Forecast Demand Using the Weighted Moving