A company wants to forecast demand using the simple moving average.If the company uses three prior yearly sales values , which of the following is the simple moving average forecast for year 2012?
A)100.5
B)122.5
C)133.3
D)135.6
E)139.3

Question

Quizplus · Accepted Answer

To calculate the simple moving average, we add up the three prior yearly sales values and divide by 3. 
(100+120+150)/3 = 133.3 
Therefore, the simple moving average forecast for year 2012 is 133.3.

A Company Wants to Forecast Demand Using the Simple Moving