What is the forecast for the Period 7 using a 3-period moving average technique,given the following time-series data for six past periods?
A)164.67
B)156.00
C)148.00
D)126.57
E)158.67

Question

What is the forecast for the Period 7 using a 3-period moving average technique,given the following time-series data for six past periods? 
A)164.67 
B)156.00 
C)148.00 
D)126.57 
E)158.67

Quizplus · Accepted Answer

To calculate the forecast for period 7 using a 3-period moving average, we need to add up the values for the last 3 periods (periods 4, 5, and 6), and divide by 3. 
Period 4 = 135
Period 5 = 165
Period 6 = 150
(135 + 165 + 150) / 3 = 150 
Therefore, the forecast for period 7 is 150, and the best choice is B.

What Is the Forecast for the Period 7 Using a 3-Period