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20 July, 16:28

Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent).

Forecast sales for the next day using a three-day weighted moving average where the weights are 3, 1, and 1 (the highest weight is for the most recent number).

a. 70.0

b. 14.0

c. 13.0

d. 28.0

e. 12.8

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Answers (1)
  1. 20 July, 16:33
    0
    b. 14.0

    Explanation:

    The computation of the forecast sales by using the three-day weighted moving average is shown below:

    = Daily demand : sum of weightage

    where,

    Daily demand would be

    = 12 * 1 + 13 * 1 + 15 * 3

    = 12 + 13 + 45

    = 70

    And, the sum weightage would be

    = 3 + 1 + 1

    = 5

    So, the forecasted sales would be

    = 70 : 5

    = 14

    Simply we take the latest annual demand after considering the weightage and then divided it by the weightage sum
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