Demand over the past three months has been 700, 750, and 900. Using a three-month moving average, what is the forecast for month four?
A) 700
B) 750
C) 900
D) 783
E) 822

Question

Quizplus · Accepted Answer

To find the three-month moving average, add up the demand for the past three months and divide by three:
(700 + 750 + 900) / 3 = 783. 
Therefore, the forecast for month four is 783.

Demand Over the Past Three Months Has Been 700, 750