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

question 128

Multiple Choice

Suppose a three-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.5. Demand observed in the previous three periods was as follows: At-3 = 2,200, At-2 = 1,950, At-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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