The data for the number of guitars sold for the past 6 weeks are 25 units,20 units,25 units,25 units,20 units,and 18 units respectively.The time series appears to be relatively stable,without trend,seasonal,or cyclical effects; thus,a moving average model would be appropriate.Setting k = 3 the three-period moving average forecast for week 7 is ________.
A)18 units
B)21 units
C)25 units
D)19 units

Question

Quizplus · Accepted Answer

The three-period moving average forecast for week 7 is calculated by averaging the sales of the last three weeks: (25 + 20 + 18) / 3 = 21 units.

The Data for the Number of Guitars Sold for the Past