Suppose a Three-Period Weighted Average Is Being Used to Forecast

question 57

Multiple Choice

Suppose a three-period weighted average is being used to forecast demand. Weights for the periods are as follows: w _t-3 = 0.2, w _t-2 = 0.3 and w _t-1 = 0.5. Demand observed in the previous three periods was as follows: A _t-3 = 2,200, A _t-2 = 1,950, and A _t-1 = 2,050. What will be the demand forecast for period t?

• A)2,000
• B)2,095
• C)1,980
• D)2,050
• E)1,875

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Definitions:

Controlled Experiments

Experimental studies in which researchers manipulate one variable to observe its effect on another, while keeping all other variables constant.

Consumer Purchase Tests

Evaluations conducted with potential customers to assess their reaction to a product before it is launched widely in the market.

Sales Tests

Controlled experiments or trials in specific market areas to estimate or predict the sales potential of a product.

Consumer-Oriented Sales Promotions

Sales tools used to support a company’s advertising and personal selling directed to ultimate consumers. Also called consumer promotions.