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24 February, 12:34

Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day moving average.

A) 13

B) 15

C) 28

D) 12.5

E) 14

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Answers (1)
  1. 24 February, 13:08
    0
    The correct option is E, 14

    Explanation:

    In using the two-day moving average to forecast for the next day sales, the previous two days sales are taken, summed to up and finally averaged (that is divided by 2)

    Next day forecast=sum of previous two days sales figures/number of days

    sum of previous two days forecast=13+15=28

    since the number of the days is 2, the 8 is divided by 2,28/2=14

    Ultimately the next day forecast sales figure is 14 newspapers

    Option A is wrong that is just considering of the two previous day, the same thing applies to option B.

    Option C is the sum of previous two days sales without being divided
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