Here are the data for the past 21 months for actual sales of a particular product: LAST YEAR THIS YEAR January 330 295 February 400 360 March 460 365 April 490 475 May 390 405 June 440 355 July 455 335 August 345 290 September 365 325 October 555 November 590 December 530 Develop a forecast for the fourth quarter using a three-quarter, weighted moving average. Weight the most recent quarter 0.50, the second most recent 0.25, and the third 0.25. Do the problem using quarters, as opposed t

Question

Mathematics

Ezekiel Paul

24 August, 15:34

Here are the data for the past 21 months for actual sales of a particular product: LAST YEAR THIS YEAR January 330 295 February 400 360 March 460 365 April 490 475 May 390 405 June 440 355 July 455 335 August 345 290 September 365 325 October 555 November 590 December 530 Develop a forecast for the fourth quarter using a three-quarter, weighted moving average. Weight the most recent quarter 0.50, the second most recent 0.25, and the third 0.25. Do the problem using quarters, as opposed t

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Answers (1)

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Javier Shaw · Answer 1

forecast for the fourth quarter is 1038.75

Step-by-step explanation:

given,

LAST YEAR THIS YEAR

January 330 295

February 400 360

March 460 365

April 490 475

May 390 405

June 440 355

July 455 335

August 345 290

September 365 325

October 555

November 590

December 530

the actual recent quarter sale is

= 335 + 290 + 325 = 950

the actual sale of second recent quarter

= 475 + 405 + 355 = 1,235

the actual sale of third most recent quarter

= 295+360+365

= 1020

forecast for the 4th quater using 3-quaters

WMA = 0.5 x 950 + 0.25 x 1235 + 0.25 x 1020

WMA = 1038.75

forecast for the fourth quarter is 1038.75