Exhibit 11.2
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using weighted moving averages.
-Refer to Exhibit 11.2. What is the 2-month weighted moving average forecast for month 3 using the weight in the spreadsheet? Associate weight w₁ with sales in time period 2 and w₂ with sales in time period 1.

Question

Exhibit 11.2
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using weighted moving averages.

-Refer to Exhibit 11.2. What is the 2-month weighted moving average forecast for month 3 using the weight in the spreadsheet? Associate weight w₁ with sales in time period 2 and w₂ with sales in time period 1.

Quizplus · Accepted Answer

The 2-month weighted moving average forecast for month 3 using the weight in the spreadsheet is 72.44. The weight w1 is associated with sales in time period 2 and w2 is associated with sales in time period 1. The formula for the weighted moving average is: Forecast = w1 * Sales in time period 2 + w2 * Sales in time period 1. Plugging in the values, we get: Forecast = 0.6 * 75 + 0.4 * 70 = 72.44.

Exhibit 11.2 The Following Questions Use the Data Below