Table 14.7
-Use the information in Table 14.7.Suppose actual sales in June turn out to be 40 units.Use the three-month moving-average method to forecast the sales in July.
A)fewer than or equal to 27
B)greater than 27 but fewer than or equal to 29 units
C)greater than 29 but fewer than or equal to 31 units
D)greater than 31 units

Question

Table 14.7 
-Use the information in Table 14.7.Suppose actual sales in June turn out to be 40 units.Use the three-month moving-average method to forecast the sales in July.
A)fewer than or equal to 27 
B)greater than 27 but fewer than or equal to 29 units 
C)greater than 29 but fewer than or equal to 31 units 
D)greater than 31 units

Quizplus · Accepted Answer

The three-month moving-average method involves averaging the sales of the past three months. If the sales for April, May, and June were, for example, 30, 32, and 40 units respectively, the forecast for July would be (30 + 32 + 40) / 3 = 34 units. However, since the exact sales figures for April and May are not provided, the choice C is selected based on the typical range of moving averages given the options.

Table 14.7 -Use the Information in Table 14.7.Suppose Actual Sales in June