What is the three-period weighted moving average for july using the weights 0.5 (most recent), 0.3, and 0.2?

1 thought on “What is the three-period weighted moving average for july using the weights 0.5 (most recent), 0.3, and 0.2?”

1. The three-period weighted moving average for july is 145.4.

   What is Weighted Moving Average?

   A weighted moving average technique is one of several methods for forecasting a given month’s value or attribute. Other techniques for forecasting from historical data include the evenly weighted moving average method, a regression analysis method, and so on.

   • When evaluating the movable average estimate of such an observation, each observation is usually weighted the same way.
   • In some cases, it is advantageous to assign different weights to the observations so that the observation closest to the forecasted time period has a higher weight.
   • This is known as the weighted moving average method. In such a weighted moving average technique, the sum of the individual weights must equal 1.

   Now, according to the question;

   The weighted moving average strategy forecast for month of July is given by:

   = (Weight for May * Sales for May) + (Weight for April * Sales for April) + (Weight for June * Sales for June)

   = (0.5 * 148) + (0.3 * 142) + (0.2* 144)

   = 145.4

   Therefore, the three-period weighted moving average for july is 145.4.

   To know more about the Weighted Moving Average, here

   https://brainly.com/question/19260285

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   The complete question is –

   13. Given the following historical data and weights of .5, .3, and .2, what is the three-period weighted moving average forecast for period 5?

   Period Value

   1 – 138 (march)

   2 – 142 (april)

   3 – 148 (may)

   4 – 144 (june)

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