Question

Ellen Carson’s sales for 5 months were $26,908, $28,386, $28,730, $27,290, and $29,009. What must be her sales next month if she wants her monthly sales average to be $28,000 for the 6 months?

Answer 1

Answer:

$28,065

Explanation:

The moving averages method uses the means of the previous months as the forecast for the next months.

The formula for the moving average is as below.

Moving Average = (n1 + n2 + n3 + ...) / n

In this case, the Moving average = $26,908 +$28,386 +$28,730, $27,290+  $29,009 / 5

= $140,323 /5

=$28,064.6

=$28,065