Table 14.7
-Use the information in Table 14.7.The forecasting equation for a three-month weighted moving average is: Ft = W1Dt + W2Dt - 1 + W3Dt - 2
If the sales for June were 40 units and the weights are W1= 1/2,W2 = 1/3,and W3 = 1/6,what is the forecast for July?
A)fewer than or equal to 30 units
B)greater than 30 but fewer than or equal to 33 units
C)greater than 33 but fewer than or equal to 36 units
D)greater than 36 units

Question

Table 14.7 
-Use the information in Table 14.7.The forecasting equation for a three-month weighted moving average is: Ft = W1Dt + W2Dt - 1 + W3Dt - 2
If the sales for June were 40 units and the weights are W1= 1/2,W2 = 1/3,and W3 = 1/6,what is the forecast for July?
A)fewer than or equal to 30 units 
B)greater than 30 but fewer than or equal to 33 units 
C)greater than 33 but fewer than or equal to 36 units 
D)greater than 36 units

Quizplus · Accepted Answer

The forecast for July is:Ft = W1Dt + W2Dt - 1 + W3Dt - 2= (1/2)(40) + (1/3)(35) + (1/6)(30)= 20 + 11.67 + 5= 36.67 unitsTherefore, the forecast for July is greater than 30 but fewer than or equal to 33 units.

Table 14.7 -Use the Information in Table 14.7.The Forecasting Equation for a Equation