SCENARIO 16-4
The number of cases of merlot wine sold by a Paso Robles winery in an 8-year period follows.
-Referring to Scenario 16-3,if a three-month moving average is used to smooth this series,how many forecasts would the analysis have?
A)2
B)3
C)4

Question

SCENARIO 16-4
The number of cases of merlot wine sold by a Paso Robles winery in an 8-year period follows. 
-Referring to Scenario 16-3,if a three-month moving average is used to smooth this series,how many forecasts would the analysis have?
A)2 
B)3 
C)4

Quizplus · Accepted Answer

A three-month moving average would require at least three data points to make a forecast. Therefore, the first forecast could be made with the data for months 1, 2, and 3, the second forecast with the data for months 2, 3, and 4, the third forecast with the data for months 3, 4, and 5, and so on. Since there are 8 years (or 96 months) of data, there would be a total of 4 forecasts.

SCENARIO 16-4 the Number of Cases of Merlot Wine Sold by a by a Paso