A Company Wants to Product a Weighted Moving Average Forecast

question 48

Multiple Choice

A company wants to product a weighted moving average forecast for April with the weights 0.40,0.35,and 0.25 assigned to March,February,and January,respectively.If the company had demands of 5,000 in January,4,750 in February,and 5,200 in March,then April's forecast is

• A)4983.33.
• B)4992.50.
• C)4962.50.
• D)5000.00.

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Definitions:

Probabilities

A calculation that determines the chances of an event occurring, with values between 0 and 1 to signify probability.

t-Table

A table used in statistics that shows the critical values of the t-distribution, used in hypothesis testing and constructing confidence intervals.

Degrees of Freedom

The number of independent values or quantities that can vary in an analysis without violating any constraints.

Mean

The arithmetic average of a set of values, calculated by summing up all the values and then dividing by the number of values.