Here are the data for the past 21 months for actual sales of a particular produc

Question

Here are the data for the past 21 months for actual sales of a particular product LAST YEAR January February March April May June July August September October November December 300 440 465 505 430 440 455 320 375 THIS YEAR 280 345 350 440 455 375 370 270 355 610 518 Develop a forecast for the fourth quarter using a three-quarter, weighted moving average. Weight the most recent quarter 0.50, the second most recent 0.25, and the third 0.25. Do the problem using quarters, as opposed to forecasting separate months. (Round your answer to 2 decimal places.) Forecast for the fourth quarter

Explanation / Answer

Answer:

Weightage Moving average for the fourth quarter is defined as below =

Forecats for Q4 = Sum of weightage value of each quarter

= (975*0.25)+ (1270*0.25)+(995*0.5)

= 243.75+317.5+497.5

= 1058.75

Month Last year This year Quarter Quarter Weightage Weightate Value for Each Quarer Forecast Jan 300 280 Q1 975 0.25 243.75 Feb 440 345 Mar 465 350 Apr 505 440 Q2 1270 0.25 317.5 May 430 455 Jun 440 375 Jul 455 370 Q3 995 0.5 497.5 Aug 320 270 Sep 375 355 Oct 555 Q4 Forecats for Q4 = Sum of weightage value of each quarter = (975*0.25)+ (1270*0.25)+(995*0.5) = 243.75+317.5+497.5 = 1058.75 1058.75 Nov 610 Dec 518

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