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 2020?
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 forecast for year 2020, we need to sum up the sales values from the preceding 3 years (2017, 2018, and 2019) and divide by 3:
(89 + 123 + 145) / 3 = 133.3
Therefore, the simple moving average forecast for year 2020 is 133.3. Answer choice C is the correct answer.

A Company Wants to Forecast Demand Using the Simple Moving