A firm has the following order history over the last 6 months. January 120
February 95
March 100
April 75
May 100
June 50
What would be a 3-month weighted moving average forecast for July, using weights of 40% for the most recent month, 30% for the month preceding the most recent month, and 30% for the month preceding that one?
A)75
B)72.5
C)50
D)90
E)106.5

Question

Quizplus · Accepted Answer

The weighted moving average calculation for July is:
(0.4 × June) + (0.3 × May) + (0.3 × April) = (0.4 × 50) + (0.3 × 100) + (0.3 × 75) = 20 + 30 + 22.5 = 72.5
Therefore, the best choice is B, as it is the closest to the calculated value.

A Firm Has the Following Order History Over the Last