Question

A company wants to forecast demand using the simple moving average. The company uses four positive prior yearly (2013,2014,2105 and 2016) sales values. All yearly sales figures are unique (no repetitions). Which of the following is most accurate about the moving average forecast for year 2017? a) Has to be between the smallest and largest yearly sales figures. b) Has to be smaller than at least one of the four yearly sales figures. c) Has to be larger than at least one of the four yearly sales figures. d) Has to be greater than all four yearly sales figures. e) A, B and C only

Answer 1

A, B and C only

Answer: Option E.

Explanation:

In statistics, a moving average is a calculation to dissect information focuses by making a progression of midpoints of various subsets of the full informational collection. It is additionally called a moving mean or moving mean and is a kind of limited motivation reaction channel. Varieties include: simple, and cumulative, or weighted structures.

The value of the moving average can lie within the values of the previous years which means it can be larger than at least few of the values of certain years., it can be greater than the values of the previous years.