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

question 21

Essay

Use the data set below (Data Set E3) to answer the questions that follow.
Data Set E3
$$\begin{array} { c c } \text { Period } & \text { Sales Volume } \\\hline 1 & 1000 \\2 & 1200 \\3 & 1450 \\4 & 1750 \\5 & 2200 \\6 & 2750\end{array}$$
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?

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Definitions:

Communist Countries

Nations where the government controls most forms of economic activity and property is commonly owned.

Scarce Resources

Scarce resources are resources that are limited in availability and cannot satisfy all the wants and needs of an economy or population.

Allocate

To distribute resources or duties for a specific purpose according to a plan.

Irrational Behavior

Irrational behavior describes actions or decisions that are not in line with logical or rational thinking, often defying expected outcomes based on standard economic theories.