Use the Data Set Below (Data Set E3)to Answer the Questions

question 25

Essay

Use the data set below (Data Set E3)to answer the questions that follow.
Data Set E3
$$\begin{array} { c c } \text { Peridd } & \text { Sales Volume }\\1 & 1000 \\2 & 1200 \\3 & 1450 \\4 & 1750 \\5 & 2200\\6&1750\end{array}$$
a.Find the four-period simple moving average forecasts for Periods 5 and 6.
b.Find the four-period weighted moving average forecasts for Periods 5 and 6 using weights of 0.05,0.15,0.30,and 0.50 from the earliest period to the latest period,respectively.
c.Which set of forecasts is more accurate,the simple moving average forecasts or the weighted moving average forecasts? Why is that set of forecasts more accurate in this particular case (using Data Set E3)?
d.Will that type of forecast always be more accurate? Why or why not?

---

Definitions:

Price Rises

A general increase in the cost of goods and services in an economy, often indicating inflationary pressures.

Ration

The controlled distribution of scarce resources, goods, or services, often during shortages or in wartime.

Surplus

The situation in which the quantity supplied of a product exceeds the quantity demanded at a given price.

Excess Demand

A situation where the quantity demanded of a product exceeds the quantity supplied at a given price, often leading to price increases.