List of formulas:

• Simple moving average method: Ft+1 = (Dt + Dt-1 + Dt-2 + + Dt-n+1)/n
• Weighted moving average method: Ft+1 = W1D1 + W2D2 + + WnDt-n+1
• Exponential smoothing method: Ft+1 = Ft + (Dt Ft)

Demands for a newly developed salad bar at the PQR restaurant for the first four months of this year are shown in the table below. Round to three decimal places. ----------------------------------

Month Demand

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January 67 February 58 March 71 April 65

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Use the problem statement and table to answer the questions below.

Question:

What is the forecast for May if the four-month weighted moving average method is used? [Note: Use weights of 0.4 for the most recent demand, 0.3, 0.2, and 0.1 for the oldest demand.]

A. 65.600

B. 68.000

C. 71.000