A Company Wants to Product a Weighted Moving Average Forecast

question 48

Multiple Choice

A company wants to product a weighted moving average forecast for April with the weights 0.40,0.35,and 0.25 assigned to March,February,and January,respectively.If the company had demands of 5,000 in January,4,750 in February,and 5,200 in March,then April's forecast is

• A)4983.33.
• B)4992.50.
• C)4962.50.
• D)5000.00.

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Definitions:

Profit-Maximizes

Strategies or actions by firms aimed at increasing their profits to the highest possible level.

Total Cost

The market value of the inputs a firm uses in production.

Marginal Cost

The supplementary cost that comes with the creation of one more unit of a product or service.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to price taking behavior.