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Morgarella [4.7K]
2 years ago
8

Problem 3. A company wants to forecast demand for June using a two period weighted moving average with weights of .6 (for May) a

nd .4 (for April). Calculate the forecast for June. Jan 100 Feb 150 Mar 200 Apr 500 May 800 June
Business
1 answer:
wel2 years ago
6 0

Answer:

June forecast = 680

Explanation:

Since we are required to use two period weighted moving average, the forecast for June can be calculated using the following formula:

June forecast = (April figure * Weight for April) + (May figure * Weight for May) ....... (1)

Where;

April figure = 500

Weight for April = 0.4

May figure = 800

Weight for May = 0.6

Substituting the values into equation (1), we have:

June forecast = (500 * 0.4) + (800 * 0.6) = 200 + 480 = 680

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Explanation:

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