Make your own example of problems and solution for the WEIGHTED MOVING AVERAGE FORECASTING METHOD

Reference for the solution (formula to use)

A manager at Fit Well department store wants to forecast sales of swimsuits for August using a three-period weighted moving average. Sales for May, June, and July are as follows: Month Actual Sales Forecast May 400 June 500 July 600 The manager has decided to weight May (0.25), June (0.25), and July (0.50). . Before You Begin: Remember that to compute a weighted moving average you need to multiply each observation by its corresponding weight. These values are then summed in order to get a weighted average. . Solution: The forecast for August is computed as follows: FHI = EC,A, FAugust = (0.25)Ayay + (0.25)Ajune + (0.50)Ajuly = (0.25)400 + (0.25)500 + (0.50)600 = 525Weighted Moving Average In a weighted moving average, each observation can be weighted differently provided that all the weights add up to 1. F.+1 = EC,A, where Fe, = next period's forecast C, = weight placed on the actual value in period A. = actual value in period r