The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's) demand for the one new tanning booth based on the following historical data: $$\begin{array} { | l | c | }
\hline { \text { Month } } & \text { Number of Visits } \
\hline \text { April } & 100 \
\hline \text { May } & 140 \
\hline \text { June } & 110 \
\hline \text { July } & 150 \
\hline \text { August } & 120 \
\hline \text { September } & 160 \
\hline
\end{array}$$
What is this month's forecast using a four-month weighted moving average with weights of .4, .3, .2, and .1?
A) 120
B) 129
C) 141
D) 135
E) 140

Question

The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's) demand for the one new tanning booth based on the following historical data: $$\begin{array} { | l | c | } 
\hline  { \text { Month } } & \text { Number of Visits } \
\hline \text { April } & 100 \
\hline \text { May } & 140 \
\hline \text { June } & 110 \
\hline \text { July } & 150 \
\hline \text { August } & 120 \
\hline \text { September } & 160 \
\hline
\end{array}$$
What is this month's forecast using a four-month weighted moving average with weights of .4, .3, .2, and .1?
A) 120
B) 129
C) 141
D) 135
E) 140

Quizplus · Accepted Answer

The four-month weighted moving average is calculated as follows:(0.4 * 160) + (0.3 * 120) + (0.2 * 150) + (0.1 * 140) = 141

The Owner of Darkest Tans Unlimited in a Local Mall