The following table includes the information about a monthly time series. When a

Question

The following table includes the information about a monthly time series. When a forecast is made by the three-month moving average method, all three monthly observations used to make this forecast are treated equally in the sense that each of them has the same weight of 1/3. What is the forecast for May when the three-month weighted moving average method is applied with the weights: 1/6, 2/6and 3/6? Assign the smallest weight to the oldest data and the largest weight to the most recent data. 19.00 2117 18.67 2400

Explanation / Answer

Forecast of May

= 24*(3/6) + 19*(2/6) + 17*(1/6)

= 127/6

= 21.17

Option B is correct.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---