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Sally, the manager of a clothing company needs to forecast the demand for an expensive type of cloth. Sue collected the demand data for the past eight months in 1000s of yards (see table below). All your answers should be in 1000s of yards as well.
Month
Demand (1000s yards)
January
8
February
12
March
7
April
9
May
15
June
11
July
10
August
The 3-month moving average forecast for September is:
A. 10,
B. 12,
C. 11,
D. 13
The 3-month weighted moving average for September using the following weights W1=0.12, W2=0.33, and W3=0.55 (for the most recent observation) is:
A. 12.37,
B. 10.35,
C. 11.22,
D. 10.43
Calculate what the 3-month Moving Average forecasts would have been April through.
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