The data below represents sales for a particular product. If you were to use the moving average method with a span of 4 periods, what would be your forecast for period 5?
A) 90
B) 100
C) 105
D) 110

Question

The data below represents sales for a particular product. If you were to use the moving average method with a span of 4 periods, what would be your forecast for period 5? 
A) 90 
B) 100 
C) 105 
D) 110

Quizplus · Accepted Answer

To calculate the moving average forecast for period 5, we need to take the average of the sales data from periods 2 to 5:
(80+90+110+120)/4 = 100
Therefore, the forecast using a span of 4 periods would be 100. However, since we can only choose from the given answer choices, the closest one to 100 is C) 105.

The Data Below Represents Sales for a Particular Product