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 2009?
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 need to sum up the four prior yearly sales values and divide them by 4 (since there are 4 prior yearly sales values). So,

Simple Moving Average = (85 + 120 + 145 + 160) / 4 = 142.5

Therefore, the simple moving average forecast for year 2009 is 142.5.

A Company Wants to Forecast Demand Using the Simple Moving