Demand for a new five-inch color TV during the last six periods has been as follows: What is the forecast for period 7 if the company uses the simple moving-average method with n = 4?

Question

Demand for a new five-inch color TV during the last six periods has been as follows:  What is the forecast for period 7 if the company uses the simple moving-average method with n = 4?

Quizplus · Accepted Answer

Simple moving-average method with n = 4 means that we take the average of the last 4 periods to forecast the demand for the next period (period 7). 
So, the forecast demand for period 7 is:
(130+120+115+110)/4 = 118.75, which rounds up to 119. 
Since the answer choices are ranges, the closest one is "greater than 120 but fewer than or equal to 125". Therefore, the answer is C.

Demand for a New Five-Inch Color TV During the Last