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23 November, 06:46

A company wants to forecast demand using the simple moving average. If the company uses three prior yearly sales values (i. e., year 2014 = 130, year 2015 = 110, and year 2016 = 160), which of the following is the simple moving average forecast for year 2017?

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  1. 23 November, 07:08
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    133.3 is the answer in simple moving average forecast for year 2017.

    Explanation:

    Forecast for 2014 = 130

    Forecast for 2015 = 110

    Forecast for 2016 = 160

    Forecast for 2017 = (130+110+160) / 3

    = 400/3

    = 133.3.

    Therefore, 133.3 is the answer in simple moving average forecast for year 2017.
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