Please find below 3 week and 4 week moving average forecast sales. Following for
ID: 374006 • 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
1249
2
1228
3
1442
4
1267
1306.33
5
1688
1312.33
1296.5
6
1476
1465.67
1406.25
7
1324
1477.00
1468.25
8
1511
1496.00
1438.75
WEEK
RENTALS
3 WEEK MOVING AVERAGE FORECAST
4 WEEK MOVING AVERAGE FORECAST
1
1249
2
1228
3
1442
4
1267
1306.33
5
1688
1312.33
1296.5
6
1476
1465.67
1406.25
7
1324
1477.00
1468.25
8
1511
1496.00
1438.75
Explanation / Answer
The owner of an online video rental service has recorded the following rentals each week:
weeks
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.)
weeks
1 2 3 4 5 6 7 8 Rentals 1249 1228 1442 1267 1688 1476 1324 1511