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

---

Definitions:

Sample Data Points

Specific values or subsets selected from a larger dataset or population that are analyzed to infer properties of the whole population.

Significance Level

A rephrased version for Level of Significance; it's the probability of rejecting the null hypothesis when it is true, serving as a critical threshold for determining the statistical significance of an observed effect.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it is the cutoff point that determines the boundary of the rejection region for a statistical hypothesis test.

Adjusted Coefficient

A statistical measure modified to account for various factors or variables, improving its accuracy or relevance.