A company wants to forecast demand using the simple moving average.If the company uses three prior yearly sales values ,which of the following is the simple moving average forecast for year 2009?
A)100.5
B)122.5
C)133.3
D)135.6
E)139.3

Question

Quizplus · Accepted Answer

To calculate the simple moving average, we sum up the three prior yearly sales values and divide by 3:

(105 + 117 + 150) / 3 = 372 / 3 = 124

Therefore, the simple moving average forecast for year 2009 is 124.

Note: None of the answer choices match 124 exactly. However, if we round up to the nearest tenth, we get 133.3, which is the closest answer choice.

A Company Wants to Forecast Demand Using the Simple Moving