3,960 3.450 3,750 3700 ) Using 2-year moving average, the forecast for year 6-37

Q: 3,960 3.450 3,750 3700 ) Using 2-year moving average, the forecast for year 6-37

Please refer below table for relevant data . Mileage Mileage Forecast 1 3050 2 3950 3 3450 3590 4 3750 3650 5 3700 3630 6 3720 As per weighted moving average method : Ft = 0.6 x At-1 + 0.4 x At-2 Ft = Forecast for period t At-1, At-2 = Actual mileage values for period t-1 and t-2 respectively Accordingly, Forecast for period 6 = 3720 Forecast for year 6 = 3720 miles Mileage Mileage Forecast 1 3050 2 3950 3 3450 3590 4 3750 3650 5 3700 3630 6 3720

ID: 387368 • Letter: 3

Question

3,960 3.450 3,750 3700 ) Using 2-year moving average, the forecast for year 6-3725 mies (round your response to me nearest whole number If a 2-year moving average is useld to make the forecast, the MAD based on this 67 miles r l place). (Hint You will have only 3 years of matched data) year 6 using a weighted 2-year moving average with weights of 0.40 and 0.60 (the weight of 060 is for the most recent period)mles (round your response to the nearest whole number response to the nearest whole number).

Explanation / Answer

Please refer below table for relevant data .

Mileage

Forecast

3050

3950

3450

3590

3750

3650

3700

3630

3720

As per weighted moving average method :

Ft = 0.6 x At-1 + 0.4 x At-2

Ft = Forecast for period t

At-1, At-2 = Actual mileage values for period t-1 and t-2 respectively

Accordingly,

Forecast for period 6 = 3720

Forecast for year 6 = 3720 miles