Table 14.11
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.

-Use the information in Table 14.11.Forecast the monthly sales of the machine for month 9,using the three-month moving-average method.

Question

Table 14.11
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.
 
-Use the information in Table 14.11.Forecast the monthly sales of the machine for month 9,using the three-month moving-average method.

Quizplus · Accepted Answer

To use the three-month moving-average method, we need to take the average of the sales for the past three months and use it as the forecast for the next month.

Month 9:

Average of sales for months 6, 7, and 8:

(3,500 + 4,000 + 4,200) / 3 = 3,880

Therefore, the forecast for month 9 is $3,880. So, the best choice is C.

Table 14.11 a Sales Manager Wants to Forecast Monthly Sales of the of the Machines