Using the data shown below,the forecast for week 5 using a three-period moving average model is:
A)200
B)155
C)152
D)158

Question

Using the data shown below,the forecast for week 5 using a three-period moving average model is: 
A)200 
B)155 
C)152 
D)158

Quizplus · Accepted Answer

To use the three-period moving average model, we take the average of the last 3 weeks' data to forecast for the next week. Therefore, the forecast for week 4 is (140+160+150)/3 = 150. Similarly, the forecast for week 5 would be (160+150+140)/3 = 150. Therefore, the best choice is C (152 is not a possible option).

Using the Data Shown Below,the Forecast for Week 5 Using