A company wants to forecast demand using the weighted moving average.If the company uses two prior yearly sales values and we want to weight year 2007 at 10% and year 2008 at 90%,which of the following is the weighted moving average forecast for year 2009?
A)120
B)128
C)133
D)138
E)142

Question

Quizplus · Accepted Answer

To calculate the weighted moving average for 2009, multiply the sales of 2007 by 10% and the sales of 2008 by 90%, then sum the results. If the sales for 2007 and 2008 are given, apply these weights to find the forecast.

A Company Wants to Forecast Demand Using the Weighted Moving