Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
$$\begin{array} { | c | c | }
\hline \text { Month } & \begin{array} { c }
\text { No. Machines } \
\text { Sold }
\end{array} \
\hline 1 & 50 \
2 & 65 \
3 & 52 \
4 & 56 \
5 & 55 \
6 & 60 \
\hline
\end{array}$$
-Use the information in Table 10.8.Forecast the demand for the machine for month 7,using the three-month moving average method.
A) less than or equal to 56
B) greater than 56 but less than or equal to 58
C) greater than 58 but less than or equal to 61
D) greater than 61

Question

Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
 $$\begin{array} { | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { No. Machines } \
\text { Sold }
\end{array} \
\hline 1 & 50 \
2 & 65 \
3 & 52 \
4 & 56 \
5 & 55 \
6 & 60 \
\hline
\end{array}$$
-Use the information in Table 10.8.Forecast the demand for the machine for month 7,using the three-month moving average method.
A) less than or equal to 56
B) greater than 56 but less than or equal to 58
C) greater than 58 but less than or equal to 61
D) greater than 61

Quizplus · Accepted Answer

The three-month moving average for month 7 is (52 + 56 + 55) / 3 = 54.33. Since the demand for the machine is expected to be greater than the three-month moving average, the demand for the machine for month 7 is forecasted to be greater than 56 but less than or equal to 58.

Table 108 a Manager Wants to Forecast the Monthly Demand for

Table 108
a Manager Wants to Forecast the Monthly Demand
for