The following table contains the number of complaints received in the department store for first 6 months of operation:Month Jan Feb Mar April May JuneComplaints 36 45 81 90 108 144a. Calculate the forecast for the month from April through June using 3 month moving average? b. What will be the forecast for the month of July using 3 month moving average?c. If actual sales for the month of July turned out to be 145, what will be theforecast for August month using 3 month moving Average?

Question

The following table contains the number of complaints received in the department store for first 6 months of operation:
Month Jan Feb Mar April May June
Complaints 36 45 81 90 108 144

a. Calculate the forecast for the month from April through June using 3 month moving average?

b. What will be the forecast for the month of July using 3 month moving average?

c. If actual sales for the month of July turned out to be 145, what will be the
forecast for August month using 3 month moving Average?

Step 1

Moving average

The moving average takes a moving window of actual values and forecasts for the next period. Since a 3 month moving average has been specified, we compute the moving average forecast for month of April by take the average of the actual values for the previous 3 months. Similarly we c...

Want to see the full answer?

See Solution

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in