Budgeting and Forecasting HW Question

Business & Finance
Tutor: None Selected Time limit: 1 Day

Using the table “Computer Sales Time Series”, calculate the forecast for computer sales (in thousands) for Week 13 using a three day weighted moving average. Use a weight of .40 for the most recent observation, .35 for the second most recent, and .25 for the third most recent.  

 

Computer Sales Time Series

Week

Sales (in thousands)

1

2

2

4

3

5

4

3

5

6

6

7

7

5

8

8

9

4

10

2

11

3

12

5


Jul 10th, 2015

Thank you for the opportunity to help you with your question!

Using three day weighted moving average,

 To find value for 13th week, we will use values of 12th, 11th and 10th week

Forecast for computer sales in 13th week =( (0.4*5) + (0.35*3) + (0.25*2) )/(0.4+0.35+0.25)

                                                     = (2 + 1.05 + 0.5) / 1

Forecast for computer sales in 13th week = 3.55  (sales in thousands)

                          


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Jul 10th, 2015

Awesome job! I appreciate the fact that you showed your work. Thank you so much! :)

Jul 10th, 2015

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