Solution-Determine a 4-year weighted moving average

The following sales data are available for 2003-2008.

Year Demand
2003 7
2004 12
2005 14
2006 20
2007 16
2008 25

Determine a 4-year weighted moving average forecast for 2009, where weights are W1 = 0.1, W2 = 0.2, W3 = 0.2 and W4 = 0.5.

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