The Following Table Includes the Information About a Monthly Time

question 42

Multiple Choice

The following table includes the information about a monthly time series. When a forecast is made by the three-month moving average method,all three monthly observations used to make this forecast are treated equally in the sense that each of them has the same weight of 1/3.What is the forecast for May when the three-month weighted moving average method is applied with the weights: 1/6,2/6,and 3/6? Assign the smallest weight to the oldest data and the largest weight to the most recent data.

• A) 19.00
• B) 24.00
• C) 18.67
• D) 21.17

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Cash Cycle

The period between the outlay of cash for the purchase of inventory and the collection of revenue from its sale.

Cost of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor.

Inventory Period

The average time it takes for a company to turn its inventory into sales, reflecting the efficiency of its inventory management.