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satela [25.4K]
2 years ago
15

Using the data set below, what would be the forecast for period 5 using a four period weighted moving average? The weights for e

ach period are 0.05, 0.15, 0.30, and 0.50 from the oldest period to the most recent period, respectively. (Choose the closest answer.)
Period

Actual Demand

1

10000

2

12400

3

13250

4

14750

5

15220

6

18500

12820
13105
13710
14610
Business
1 answer:
swat322 years ago
4 0

Answer:

13,710

Explanation:

The computation of the forecast for period 5 using a four period weighted moving average is shown below:

= Weights of period 1 × Period 1 + Weights of period 2 × Period 2 + Weight of period 3 × Period 3 + Weights of period 4 × Period 4

= .05 × 10000 + .15 × 12400 + .30 × 13250 + .50 × 14750

= 5,00 + 1,860 + 3,975 + 7,375

= 13,710

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