A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values , which of the following is the simple moving average forecast for year 2020?
A) 100.5
B) 140.0
C) 142.5
D) 145.5
E) 155.0

Question

Quizplus · Accepted Answer

Since the simple moving average is calculated using the average of the four prior yearly sales values, the forecast for 2020 would be:

(2016 sales + 2017 sales + 2018 sales + 2019 sales) / 4 = (80 + 150 + 135 + 160) / 4 = 142.5

Therefore, the best choice is C, with a forecast of 142.5.

A Company Wants to Forecast Demand Using the Simple Moving