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

question 46

Multiple Choice

Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-4 = 0.1, wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.4. Demand observed in the previous four periods was as follows: At-4 = 380, At-3 = 410, At-2 = 390, At-1 = 400. What will be the demand forecast for period t?

• A) 402
• B) 397
• C) 399
• D) 393
• E) 403

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