Using the data set below, what would be the forecast for period 5 using a four period weighted moving average? The weights for each period are 0.05, 0.15, 0.30, and 0.50 from the oldest period to the most recent period, respectively. (Choose the closest answer.)

Period

Actual Demand

1

10000

2

12400

3

13250

4

14750

5

15220

6

18500

12820

13105

13710

14610

13,710

Explanation:

The computation of the forecast for period 5 using a four period weighted moving average is shown below:

= Weights of period 1 * Period 1 + Weights of period 2 * Period 2 + Weight of period 3 * Period 3 + Weights of period 4 * Period 4

=.05 * 10000 +.15 * 12400 +.30 * 13250 +.50 * 14750

= 5,00 + 1,860 + 3,975 + 7,375

= 13,710