John's House of Pancakes Uses a Weighted Moving Average Method

question 81

Multiple Choice

John's House of Pancakes uses a weighted moving average method to forecast pancake sales.It assigns a weight of 5 to the previous month's demand,3 to demand two months ago,and 1 to demand three months ago.If sales amounted to 1000 pancakes in May,2200 pancakes in June,and 3000 pancakes in July,what should be the forecast for August?

• A)2400
• B)2511
• C)2067
• D)3767
• E)1622

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Definitions:

Demand Equation

A mathematical formula that represents the relationship between the quantity of a good or service demanded and various factors affecting it, such as price and income.

Equilibrium Quantity

The quantity of goods supplied that is exactly equal to the quantity of goods demanded at the market price.

Consumer Expectations

The beliefs or anticipations consumers have about future prices, product quality, service, and other factors that influence their purchasing decisions.

Future Price

The anticipated cost or value of a good, security, or commodity at a specified future date, often used in the context of futures trading.