Given the following history, use a three-quarter moving average to forecast the

Question

Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.

Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.

Explanation / Answer

Here we using the 3 quarter moving average, we will assume all the 3 months have same forecast in that quarter.

3 quarter moving average for Jul, Aug, Sep will be the average of past 9 months, because they constitute the past 3 quarters.

Jul, aug, sep = (250+275+300+170+178+160+240+225+215)/9 = 223.67 = 224

Forecast for the third quarter = 224

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