Suppose That You Are Using the Four-Period Weighted Moving Average

question 57

Multiple Choice

Suppose that you are using the four-period weighted moving average forecasting method to forecast sales and you know that sales will be increasing every period for the foreseeable future. What of the following would be the best set of weights to use (listed in order from the most recent period to four periods ago, respectively) ?

• A) 0.25, 0.25, 0.25, 0.25
• B) 0.40, 0.30, 0.20, 0.10
• C) 1.00, 0.00, 0.00, 0.00
• D) 0.10, 0.20, 0.30, 0.40
• E) 0.00, 0.00, 0.00, 1.00