A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data: $$\begin{array} { | l | c | }
\hline { \text { Year } } & \text { Attendance } \
\hline \text { Four Years ago } & 10,000 \
\hline \text { Three Years ago } & 12,000 \
\hline \text { Two Years ago } & 18,000 \
\hline \text { Last Year } & 20,000 \
\hline
\end{array}$$
What is this year's forecast using a two-year weighted moving average with weights of .7 and .3?
A) 19,400
B) 18,600
C) 19,000
D) 11,400
E) 10,600

Question

A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data: $$\begin{array} { | l | c | } 
\hline { \text { Year } } & \text { Attendance } \
\hline \text { Four Years ago } & 10,000 \
\hline \text { Three Years ago } & 12,000 \
\hline \text { Two Years ago } & 18,000 \
\hline \text { Last Year } & 20,000 \
\hline
\end{array}$$
What is this year's forecast using a two-year weighted moving average with weights of .7 and .3?
A) 19,400
B) 18,600
C) 19,000
D) 11,400
E) 10,600

Quizplus · Accepted Answer

The two-year weighted moving average is calculated as (0.7 * Last Year's Attendance) + (0.3 * Two Years ago Attendance) = (0.7 * 20,000) + (0.3 * 18,000) = 14,000 + 5,400 = 19,400.

A Concert Promoter Is Forecasting This Year's Attendance for One