Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

(Forecasting) You have the following data for the last 12 months’ sales for the

ID: 2494405 • Letter: #

Question

(Forecasting) You have the following data for the last 12 months’ sales for the PRQ Corporation (in $1000s):

Monthly Sales:

January 500

February 520

March 520

April 510

May 530

June 580

July 610

August 620

September 580

October 550

November 510

December 480

a. Calculate a 3-month centered moving average.

b. Use this moving average to forecast sales for January of next year.

c. If you were asked to forecast January and February sales for next year, would you be confident of your forecast using the preceding moving average? Why or why not? please include the explaination if you can

Explanation / Answer

3 month centered average is 572