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Forecast using moving average and waighted moving average

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1- What is the forecast for your Year 6 sales using a 2-year moving average?

2-What is the MAD based upon a 2-year moving average?

3-What is the forecast for your Year 6 sales using a weighted 2-year moving average with weights of 70% for the most recent year and 30% for the year before that?

4-What is the MAD based upon a 2-year weighted moving average using weights of 70% for the most recent year and 30% for the year before that?

I want number answers

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Solution Summary

For given data moving average, weighted moving average and MAD are estimated.

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1.
Forecast for year 6 (using 2-year moving average) = (4200+3500)/2 = 3850

3.
Forecast ...

Solution provided by:
Amrit Lal Ahuja, PhD (IP)
Education
  • BEng, Allahabad University, India
  • MSc , Pune University, India
  • PhD (IP), Pune University, India
Recent Feedback
  • " In question 2, you incorrectly add in the $3.00 dividend that was just paid to determine the value of the stock price using the dividend discount model. In question 4 response, it should have also been recognized that dividend discount models are not useful if any of the parameters used in the model are inaccurate. "
  • "feedback: fail to recognize the operating cash flow will not begin until the end of year 3."
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