Question

given the following historical demand, what is the weighted moving average forecast (0.4, 0.3, 0.3) for week 6? week 1 = 3000 week 2 = 5000 week 3 = 7000 week 4 = 9000 week 5 = 11000 week 6 = predict using the weighted moving average forecast (0.4, 0.3, 0.3)

Answer 1

Forecast for week 6 = 9200

A weighted moving average emphasizes recent data while downplaying historical data. This is accomplished by increasing the price of each bar by a weighting factor. Weighted Moving Average will track prices more precisely than a related Simple Moving Average due to its special calculation.

In a weighted moving average approach, recent values of demand are given greater weight since they are more pertinent. As a result, we have

Forecast for week 6 = (Week 5 * 0.4) + (Week 4 * 0.3) + (Week 3 * 0.3)

= (11000 * 0.4) + (9000 * 0.3) + (7000 * 0.3) = 9200

Therefore, Forecast for week 6 = 9200

To know more about Weighted Moving Average Demand, refer to this link :

brainly.com/question/17039065?referrer=searchResults

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