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People Window Help a Secure htt 10 Practice ivity/1120aab/1872343 BCOR 360-Summer 2018-701 Concents- CourseUndsey Mc Your Submission: Started on Jun 03 at 14 The sales of new ford focus has been steadily increasing every month. Use the sales data below to forecast how many cars to produce for July by using single period moving average Period Forecast 553 Feb Mar Apr 456 721 819 890 Jun 685 890 819 D456 You are the production manager at a company that manufactures processor chips for iPhones. You need a demand forecast for 2017 to help decide whether to add new production capacity. The company's sales history (in millions of units is shown in the thble below. use weights of 0.4,0.3,02. 0.1, with the most recent observation weighted higher, to forecast the demand in 2017 Year 2010 2011 Forecast Demand 0.9 1.6

Explanation / Answer

1. based on moving average, the average sales for the next month, i.e. july month is= 553+456+685+721+819+890

= 4124/6=687.33

option A is the right answer, i.e. 685 is the nearest answer.

2. the weights are given as 0.4, 0.3, 0.2, and 0.1 from recent to past.

the sales from recent to past for the 4 years are= 4.2, 3.5, 2.7 and 2.5

the saels for next year, i.e. 2017 is= 0.4*4.2+0.3*3.5+0.2*2.7+0.1*2.5= 1.68+1.05+0.54+0.25= 3.52

option C is the right answer.

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