The business analyst for Ace Business Machines, Inc. wants to forecast this year's demand for manual typewriters based on the following historical data:
$$\begin{array} { | c | c | }
\hline \text { Time Periad } & \text { Demand } \
\hline 5 \text { years ago } & 900 \
\hline 4 \text { years ago } & 700 \
\hline 3 \text { years ago } & 600 \
\hline 2 \text { years ago } & 500 \
\hline \text { Last year } & 300 \
\hline
\end{array}$$
What is the forecast for this year using a moving-average forecast based on the last three years?
A) 163
B) 180
C) 300
D) 467
E) 510

Question

The business analyst for Ace Business Machines, Inc. wants to forecast this year's demand for manual typewriters based on the following historical data:
$$\begin{array} { | c | c | } 
\hline \text { Time Periad } & \text { Demand } \
\hline 5 \text { years ago } & 900 \
\hline 4 \text { years ago } & 700 \
\hline 3 \text { years ago } & 600 \
\hline 2 \text { years ago } & 500 \
\hline \text { Last year } & 300 \
\hline
\end{array}$$
What is the forecast for this year using a moving-average forecast based on the last three years?
A) 163
B) 180
C) 300
D) 467
E) 510

Quizplus · Accepted Answer

The moving-average forecast based on the last three years involves adding the demand for the last three years and dividing by 3. So, $ \frac{600 + 500 + 300}{3} = \frac{1400}{3} = 467 $.

The Business Analyst for Ace Business Machines, Inc What Is the Forecast for This Year Using a Moving-Average