Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent).Forecast sales for the next day using a three-day weighted moving average where the weights are 3, 1, and 1 (the highest weight is for the most recent number).
A)12.8
B)13.0
C)70.0
D)14.0

Question

Quizplus · Accepted Answer

The three most recent days' sales are 13, 15, and 12. Using the weights 3, 1, and 1, the forecast is calculated as follows: [(3*12) + (1*15) + (1*13)] / (3+1+1) = (36 + 15 + 13) / 5 = 64 / 5 = 12.8. However, the correct calculation should be [(3*12) + (1*15) + (1*13)] / 5 = 64 / 5 = 12.8, which seems to be a mistake in the explanation. Correctly applying the weights to the most recent days (giving the highest weight to the most recent number) should actually be [(3*15) + (1*13) + (1*12)] / 5 = (45 + 13 + 12) / 5 = 70 / 5 = 14.

Daily Demand for Newspapers for the Last 10 Days Has