Demand for a new five-inch color TV during the last six periods has been as follows:
What is the forecast for period 7 if the company uses the simple moving-average method with n = 4?
A) fewer than or equal to 115
B) greater than 115 but fewer than or equal to 120
C) greater than 120 but fewer than or equal to 125
D) greater than 125

Question

Demand for a new five-inch color TV during the last six periods has been as follows: 
What is the forecast for period 7 if the company uses the simple moving-average method with n = 4?
A) fewer than or equal to 115 
B) greater than 115 but fewer than or equal to 120 
C) greater than 120 but fewer than or equal to 125 
D) greater than 125

Quizplus · Accepted Answer

To use the simple moving-average method with n = 4, we need to take the average of the last 4 periods. 
Average = (130+120+115+110)/4 = 118.75
Therefore, the forecast for period 7 would be 118.75. Since it is greater than 120, but less than or equal to 125, the answer is C.

Demand for a New Five-Inch Color TV During the Last