Exhibit 11.1
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using moving averages.
-Refer to Exhibit 11.1. What would be the forecasted values for time periods 13 and 14?
A) 81.00 and 79.50.
B) 78.00 and 78.00.
C) 80.50 and 80.13.
D) 80.50 and 80.00.

Question

Exhibit 11.1
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using moving averages. 
-Refer to Exhibit 11.1. What would be the forecasted values for time periods 13 and 14?
A) 81.00 and 79.50. 
B) 78.00 and 78.00. 
C) 80.50 and 80.13. 
D) 80.50 and 80.00.

Quizplus · Accepted Answer

Using a 3-month moving average, the forecasted value for time period 13 would be (79 + 81 + 85)/3 = 81 and for time period 14 would be (81 + 85 + 76)/3 = 80.5.

Exhibit 11.1 The Following Questions Use the Data Below