Sales of a New CD at a Store for the Last

question 69

Essay

Sales of a new CD at a store for the last 4 weeks are shown below. $\begin{array}{|l|c|c|c|c|}\hline \text { Week } & 1 & 2 & 3 & 4 \\\hline \text { Sales } & 112 & 105 & 125 & 118 \\\hline\end{array}$
a.Find a three-period moving average forecast for the next week.
b.Find a four-period moving average forecast for the next week.
c.Actual sales for week 5 were 105 units. What would be the three- and four-period moving average forecasts for week 6?

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Definitions:

Irrational Decision-Making

The process of making decisions based on emotions, biases, or illogical reasoning rather than rational analysis.

External Attributions

Attributing personal behaviors and outcomes to factors outside one's control.

Internal Attributions

The process of inferring that a person's behavior is due to their personality, disposition, or beliefs rather than external factors.

Statistical Regression

A phenomenon where extreme scores or outcomes tend to move towards the average over time.