21 is in the last two pictures. A and B go with 21 at top of last picture of a p

Question

21 is in the last two pictures. A and B go with 21 at top of last picture of a particular product: LAST YEAR THIS YEAR January February March April May June July August September October November December 300 400 425 450 400 460 400 300 375 500 550 500 275 375 350 425 400 350 350 275 350 Develop a forecast for the fourth quarter using a three quarter, weighted moving average. Weight the most recent quarter 5, the second most recent 25, and the third 25. Do the problem using quarters, as opposed to forecasting separate months.

Explanation / Answer

Please find answer to question no 4 :

Given are :

Actual sales for first quarter ( January – March ) = 275 + 375 + 350 = 1000

Actual sales for 2nd quarter ( April – June) = 425 + 400 + 350 = 1175

Actual sales for 3rd Quarter ( July – September) = 350 + 275 + 350 = 975

Thus forecast for 4th quarter

= Weightage for third Quarter x Actual sales for 3rd quarter + Weightage for 2nd quarter x Actual sales for 2nd quarter + Weightage for 1st quarter x Actual sales for first quarter

= 0.5 x 975 + 0.25 x 1175 + 0.75 x 1000

= 487.5 + 293.75 + 750

= 1531.25

FORECAST FOR 4TH QUARTER = 1531.25

FORECAST FOR 4TH QUARTER = 1531.25

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