A firm's demand data from the last two quarters is displayed in the table. Use a three period moving average to forecast demand for July. $$\begin{array} { | c | c | }
\hline \text { Month } & \text { Demand } \
\hline \text { January } & 154 \
\hline \text { February } & 148 \
\hline \text { March } & 214 \
\hline \text { April } & 180 \
\hline \text { May } & 225 \
\hline \text { June } & 246 \
\hline
\end{array}$$
A)206
B)217
C)223
D)226

Question

A firm's demand data from the last two quarters is displayed in the table. Use a three period moving average to forecast demand for July. $$\begin{array} { | c | c | } 
\hline \text { Month } & \text { Demand } \
\hline \text { January } & 154 \
\hline \text { February } & 148 \
\hline \text { March } & 214 \
\hline \text { April } & 180 \
\hline \text { May } & 225 \
\hline \text { June } & 246 \
\hline
\end{array}$$
A)206
B)217
C)223
D)226

Quizplus · Accepted Answer

To forecast July's demand using a three-period moving average, we average the demands of April, May, and June: $\frac{180 + 225 + 246}{3} = 217$.

A Firm's Demand Data from the Last Two Quarters Is