What Is the Forecast for May Based on a Weighted

question 123

Essay

What is the forecast for May based on a weighted moving average applied to the following past demand data and using the weights: 4, 3, 2 (largest weight is for most recent data)?
$$\begin{array} { | l | l | l | l | l | l | } \hline \text { Nov. } & \text { Dec. } & \text { Tan. } & \text { Feb. } & \text { Mar. } & \text { April } \\\hline 37 & 36 & 40 & 42 & 47 & 43 \\\hline\end{array}$$

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Definitions:

Long-run Equilibrium

A state in economics where all factors of production and economic agents are fully adjusted to the conditions, and no further tendency for change exists.

Competitive Price-searcher Market

A market structure where firms have some control over their selling price because their products are differentiated.

Competitive Price-searcher Market

A market where firms have some control over the price because their products are differentiated.

Average Total Cost

The sum of all production costs (both fixed and variable) divided by the amount of produced output.