Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Last year 100 125 135 175 185 200 150 140 130 200 225 250
This year 125 135 135 190 200 190
Forecast for the third quarter:

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muqeetnaeem6 muqeetnaeem6 · Answer 1 · 2020-04-07T03:25:27+02:00

Answer:

The three quarter moving average is 550.

Explanation:

Oct 200

Nov 225

Dec 250 Sum of (200+225+250) = 675

Jan 125

Feb 135

Mar 135 Sum of (125+135+135) = 395

Apr 190

May 200

Jun 190 Sum of (190+200+190) = 580

The three quarter moving average is:

⇒ (675+395+580)

3

⇒ 550

Supabrain Supabrain · Answer 2 · 2020-04-07T03:44:41+02:00

Answer:

The Forecast demand for the third quarter = 550

Explanation:

When using a three-quarter moving average we need data three previous quarters and in order to calculate a quarter average we need monthly data.

Step 1 : Calculate Average for three quarters prior the current required quarter

1st quarter's Average = (Oct +Nov *Dec) / 3 = (200+225+250)/3 = 225

2nd quarter's Average = (Jan +Feb + Mar)/3 = (125+135+135)/3 = 132

3rd quarter's Average = (Apr + May + Jun)/3 = (190+200+190)/3 = 193

Step 2 : Add all the averages

Demand Average= 193 + 132 + 225 = 550