Exhibit 11.1
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using moving averages.
-Refer to Exhibit 11.1. What is the 4-month moving average forecast for month 5?
A) 71
B) 72.5
C) 74
D) 75

Question

Exhibit 11.1
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using moving averages. 
-Refer to Exhibit 11.1. What is the 4-month moving average forecast for month 5?
A) 71 
B) 72.5 
C) 74 
D) 75

Quizplus · Accepted Answer

To calculate the 4-month moving average forecast for month 5, we take the average of the sales from months 2-5, which is (68+75+72+78)/4 = 72.5.

Exhibit 11.1 The Following Questions Use the Data Below