What is the forecasted sale of umbrellas in the month of June using the 3-period moving averages?

Month

sales

January 1,000

February 1,000

March

1,500

April

2,000

May

2,500

The forecasted sale for the month of June is

The forecasted sales for the month of June is 2,000

Explanation:

Using the 3-period moving averages for computing the forecasted sale of umbrellas in the month of June and the formula to compute the same is as:

Forecasted sales = Sum of last three months sales / 3

where

Last 3 months before June will be:

March whose sales is 1,500

April whose sales is 2,000

May whose sales is 2,500

Putting the values above:

= (1,500 + 2,000 + 2,500) / 3

= 6,000 / 3

= 2,000