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A company wants to forecast demand using the simple moving average. If the company uses five prior yearly sales values (i.e., year 2009 = 230, year 2010 = 250, and year 2011 =215, year 2012=240, year 2013=260), with the following weights (i.e., wt-1 =0.4, wt-2 =0.2, wt-3 =0.2, wt-4 =0.1, wt-5 =0.1), which of the following is the weighted moving average forecast for year 2014?
A. 155
B. 261
C. 243
D. 283
E. 213

Respuesta :

veronicaculs

Answer:

Forecasted sales for 2014: $235.

Explanation:

  • If the company uses five prior yearly sales, to forecast year 2014, we should take into account the sales from 2009 to 2013 to forecast 2014 sales.
  • If sales of previous years are year 2009 = 230, year 2010 = 250, and year 2011 =215, year 2012=240, year 2013=260, and;
  • weights  assigned to each previous year in order of appeareance are wt-1 =0.4, wt-2 =0.2, wt-3 =0.2, wt-4 =0.1, wt-5 =0.1, then 2014 forecasted sales are:
  • [tex]230\times{0.4}+250\times{0.2}+215\times{0.2}+240\times{0.1}+260\times{0.1}=235[/tex]

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