State Division of Motor Vehicles (DMV) statistics show the rate of new driver\'s
ID: 463665 • Letter: S
Question
State Division of Motor Vehicles (DMV) statistics show the rate of new driver's license applications to be as shown:
Month Week Applications
April 1 240
2 200
3 215
4 210
May 1 210
2 212
3 200
4 216
Using weights of 1/3 for the most recent week, ¼ for the next most recent week, ¼ for the third most recent week, and 1/6 for the fourth most recent week, what is the four period weighted moving average forecast for the first week in June?
Explanation / Answer
Month
Week
Applications (n)
Weight (w)
n*w
April
1
240
2
200
3
215
4
210
May
1
210
1/6
35
2
212
1/4
53
3
200
1/4
50
4
216
1/3
72
June
1
Weighted Moving average forecast
210
Formula for the four period weighted moving average forecast = Ft+1 = w1* (nt) + w2* (nt-1) + w3* (nt-2) + w4* (nt-3)
Where w1, w2,w3 and w4 are the weights
And nt, nt-1,nt-2, nt-3 are number of application for corresponding weeks
Therefore weighted moving average forecast for the first week in June
= 1/3 * 216 + ¼ *200 + ¼ * 212 + 1/6 * 210
= 72 + 50 + 53 + 35 = 210
Month
Week
Applications (n)
Weight (w)
n*w
April
1
240
2
200
3
215
4
210
May
1
210
1/6
35
2
212
1/4
53
3
200
1/4
50
4
216
1/3
72
June
1
Weighted Moving average forecast
210
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.