Using the actual demand shown in the table below, what is the forecast for May (accurate to 1 decimal) using a 4-month weighted moving average and the weights 0.1, 0.2, 0.3, 0.4 (with the heaviest weight applied to the most recent period)? Nov.Dec.Jan.Feb.Mar.Apr.39
36
40
38
48
46
A)44.4
B)43.0
C)42.5
D)41.6

Question

Quizplus · Accepted Answer

- Start with the most recent period (April) and apply the highest weight of 0.4
- Move on to the next period (March) and apply a weight of 0.3
- Continue with February (0.2) and January (0.1)
- Add up the products of demand and weights and divide by the sum of the weights
- Forecast for May: (0.4*46) + (0.3*48) + (0.2*38) + (0.1*40) = 18.4 + 14.4 + 7.6 + 4 = 44.4

Using the Actual Demand Shown in the Table Below, What