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 formula should be entered in cell C6 to compute the 2-month weighted moving average forecast for month 3?
A) =F3*B4+F4*B3
B) =$F$3*B4+$F$4*B3
C) =(B3+B4)/2
D) =SUMPRODUCT($F$3:$F$4,B3:B4)

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 formula should be entered in cell C6 to compute the 2-month weighted moving average forecast for month 3?
A) =F3*B4+F4*B3 
B) =$F$3*B4+$F$4*B3 
C) =(B3+B4)/2 
D) =SUMPRODUCT($F$3:$F$4,B3:B4)

Quizplus · Accepted Answer

The formula to compute the 2-month weighted moving average forecast for month 3 is:
=(F2*B3+F3*B2)/(B2+B3)
However, the cell references should be absolute to avoid errors when copying the formula to other cells, resulting in:
=($F$2*B3+$F$3*B2)/($B$2+$B$3)
Therefore, the best choice is B. Option A is incorrect because it only uses two terms (F3 and F4) instead of two weights (B3 and B4). Option C is incorrect because it only computes the simple average of the two months. Option D uses the SUMPRODUCT function, but it is not applicable for computing weighted moving averages.

Exhibit 11.2 The Following Questions Use the Data Below