A restaurant wants to forecast its weekly sales. Historical data (in dollars) fo

ID: 459774 • Letter: A

Question

A restaurant wants to forecast its weekly sales. Historical data (in dollars) for 15 weeks are shown below and can be found on worksheet C11P6 in the OM5 Data Workbook on the CourseMate Web site. (Note: You may copy the data from the worksheet to the appropriate Excel template.) Time Period Observation 1 1486 2 1533 3 1455 4 1386 5 1209 6 1348 7 1581 8 1332 9 1245 10 1521 11 1421 12 1502 13 1656 14 1312 15 1532 c.) What is the forecast for week 16, using a three-period moving average? A restaurant wants to forecast its weekly sales. Historical data (in dollars) for 15 weeks are shown below and can be found on worksheet C11P6 in the OM5 Data Workbook on the CourseMate Web site. (Note: You may copy the data from the worksheet to the appropriate Excel template.) Time Period Observation 1 1486 2 1533 3 1455 4 1386 5 1209 6 1348 7 1581 8 1332 9 1245 10 1521 11 1421 12 1502 13 1656 14 1312 15 1532 c.) What is the forecast for week 16, using a three-period moving average?

Explanation / Answer

On the basis of 3 period moving average,

Forecast of 16th week = (week 13 + week 14 + week 15) / 3

Forecast of 16th week = (1656 + 1312+1532)/3 = 1500

Thus, forecast of 16th week is 1500 sales.

Time Period

Observation

Forecast (Three period moving average)

1486

1533

1455

1386

1491.33

1209

1458.00

1348

1350.00

1581

1314.33

1332

1379.33

1245

1420.33

1521

1386.00

1421

1366.00

1502

1395.67

1656

1481.33

1312

1526.33

1532

1490.00

1500.00