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Assignment Problems Naive Forecasting Models – Moving Average Cost Calculate the

ID: 3251701 • Letter: A

Question

Assignment

Problems

Naive Forecasting Models – Moving Average Cost

      Calculate the Simple Moving Average after two periods:

Period             At       

1                      928

2                      861

3                      872

4                      852

5                      855

6                      658

7                      640

8                      716

9                      527

Complete this table (calculation and SMA) for periods 3 through 10

Period             At                    Calculation                 SMA

1                      928                  --                                  --

2                      861                  --                                  --

3                      872                 

4                      852                 

5                      855                 

6                      658                 

7                      640                 

8                      716                 

9                      527                 

10                                           

Naive Forecasting Models – Weighted Moving Average

Calculate the Weighted Moving Average for three periods:

Weight = the oldest 0.20, mid 0.35 and most recent 0.45.

Period             At        Weight

1                      455     

2                      410

3                      340

4                      338

5                      433

6                      356

7                      371

8                      363

9                      440

     

Complete this table (calculation and WMA) for periods 4 through 10

Period             At        Calculation                                         WMA

1                      455                  --                                              --

2                      410                  --                                              --

3                      340                  --                                              --

4                      338     

5                      433     

6                      356     

7                      371     

8                      363     

9                      440     

10   

Explanation / Answer

WEIGHTED MOVING AVERAGES

PERIOD AT SMA 1 928 CALCULATION (928+861)/2 2 861 3 872 894.5 4 852 866.5 5 855 862 6 658 853.5 7 640 756.5 8 716 649 9 527 678
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