company wants to forecast demand using the simple moving average.If the company uses four prior yearly sales values ,which of the following is the simple moving average forecast for year 2017?
A)100.5
B)140.0
C)142.5
D)145.5
E)155.0

Question

Quizplus · Accepted Answer

To calculate the simple moving average, we need to add up the four prior yearly sales values and divide by 4. 
Therefore, the simple moving average forecast for year 2017 would be (100+150+120+165)/4 = 142.5. 
Hence, option C is the correct answer.

Company Wants to Forecast Demand Using the Simple Moving Average