A company wants to forecast demand using the simple moving average.If the company uses four prior yearly sales values , which of the following is the simple moving average forecast for year 2012?
A)100.5
B)140.0
C)142.5
D)145.5
E)155.0

Question

Quizplus · Accepted Answer

To calculate the simple moving average, we sum up the four prior yearly sales values (2008, 2009, 2010, 2011) and divide by 4:
(100 + 150 + 175 + 150) / 4 = 142.5
Therefore, the simple moving average forecast for year 2012 is 142.5.

A Company Wants to Forecast Demand Using the Simple Moving