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

To calculate the forecast using a simple moving-average method with n=4, we need to add up the demand for the last four periods and divide by 4:

(120 + 125 + 130 + 110) / 4 = 121.25

Therefore, the forecast for period 7 is greater than 120 but fewer than or equal to 125, which is answer choice C.

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