Sales of a particular product (in the thousands of dollars) for the year of 2015 through 2018 have been $48,000, $64,000, $67,000 and $83,000 respectively. (a) What sales would you predict for 2019, using a simple four year moving average? (b) What sales would you predict for 2019, using a weighted moving average with weights of 0.50 for the immediate preceding year 0.3, 0.15, and 0.05 for the three years before that?

Sales of a particular product (in the thousands of dollars) for the year of 2015 through 2018 have been $48,000, $64,000, $67,000 and $83,000 respectively. (a) What sales would you predict for 2019, using a simple four year moving average? (b) What sales would you predict for 2019, using a weighted moving average with weights of 0.50 for the immediate preceding year 0.3, 0.15, and 0.05 for the three years before that?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 9P

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