Question

Plot the following data about demand for an item. Find the moving averages by taking n = 3. Use these to forecast next two months’ demand. Month 1 2 3 4 5 6 7 8 9 10 11 12 Demand 46 56 54 43 57 56 67 62 50 56 47 56

Answer 1

Answer on Question #84189 – Math – Statistics and Probability

Question

Plot the following data about demand for an item. Find the moving averages by taking $n = 3$ . Use these to forecast next two months' demand.

Month 1 2 3 4 5 6 7 8 9 10 11 12

Demand 46 56 54 43 57 56 67 62 50 56 47 56

Solution

Plot:

Moving averages:

$\mathrm{MA}_3 = (46 + 56 + 54) / 3 = 52$

$\mathrm{MA}_4 = 52 + (43 - 46) / 3 = 51$

$\mathrm{MA}_5 = 51 + (57 - 56) / 3 = 51.33 \ldots = 51$

$\mathrm{MA}_6 = 51 + (56 - 54) / 3 = 51.66 \ldots = 52$

$\mathrm{MA}_7 = 52 + (67 - 43) / 3 = 60$

$\mathrm{MA}_8 = 60 + (62 - 57) / 3 = 61.66 \ldots = 62$

$\mathrm{MA}_9 = 62 + (50 - 56) / 3 = 60$

$\mathrm{MA}_{10} = 60 + (56 - 67) / 3 = 56.33 \ldots = 56$

$\mathrm{MA}_{11} = 56 + (47 - 62) / 3 = 51$

$\mathrm{MA}_{12} = 51 + (56 - 50) / 3 = 53$

Forecast:

$$\mathrm {F C} _ {1 3} = (5 6 + 5 1 + 5 3) / 3 = 5 3. 3 3 \dots = 5 3$$ $$\mathrm {F C} _ {1 4} = (5 1 + 5 3 + 5 3) / 3 = 5 2. 3 3 \dots = 5 2$$

**Answer:**

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