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Please find below 3 week and 4 week moving average forecast sales. Following for

ID: 373130 • Letter: P

Question

Please find below 3 week and 4 week moving average forecast sales.

Following formula have been used for the calculation

3 week moving average :

Ft = ( Ft-1 + Ft-2 + Ft-3) /3

4 week moving average :

Ft = ( Ft-1 + Ft-2 + Ft-3 + Ft-4) /4

WEEK

Rentals

3 week moving average forecast

4 week moving average forecast

1

1323

2

1297

3

1466

4

14554

1362.00

5

1517

5772.33

4660.00

6

1423

5845.67

4708.50

7

1487

5831.33

4740.00

8

1553

1475.67

4745.25

WEEK

Rentals

3 week moving average forecast

4 week moving average forecast

1

1323

2

1297

3

1466

4

14554

1362.00

5

1517

5772.33

4660.00

6

1423

5845.67

4708.50

7

1487

5831.33

4740.00

8

1553

1475.67

4745.25

Explanation / Answer

The owner of an online video rental service has recorded the following rentals each week:

a. Use a three-week moving average to forecast sales for each of the weeks 4 through 9. (Round your answer to 2 decimal places.)

b. Use a four-week moving average to forecast sales for each of the weeks 5 through 9. (Round your answer to 2 decimal places.)

week 1 2 3 4 5 6 7 8 Rentals 1323 1297 1466 14554 1517 1423 1487 1553