Table 11.4.

-Use the information in Table 11.4. Suppose actual sales in June turn out to be 40 units. Use the three- month moving average method to forecast the sales in July.
A) less than or equal to 27
B) greater than 27 but less than or equal to 29 units
C) greater than 29 but less than or equal to 31 units
D) greater than 31 units

Question

Table 11.4.

-Use the information in Table 11.4. Suppose actual sales in June turn out to be 40 units. Use the three- month moving average method to forecast the sales in July.
A) less than or equal to 27 
B) greater than 27 but less than or equal to 29 units 
C) greater than 29 but less than or equal to 31 units 
D) greater than 31 units

Quizplus · Accepted Answer

The three-month moving average is calculated by averaging the sales of the last three months. If the sales for April, May, and June are given, the average of these three months will provide the forecast for July. If the average is between 29 and 31, then option C is correct.

Table 11.4. -Use the Information in Table 11.4. Suppose Actual Sales in Suppose