Question: The Fresh Connection has been having trouble with recent forecast accuracy. They have given you the following data for the past 1 2 months of

The Fresh Connection has been having trouble with recent forecast accuracy. They have given you the following data for the past 12 months of sales for one product asked you to forecast Month 13 using a 3 period Simple Moving Average. Enter your forecast for month 13 below. MonthSales 27,4051230,673327.129431.018532,246626,707728,137832,54830,9801035,903111231,45434,072 This is nothing more than taking the simple average of the most recent number of periods indicated . As you increase the number of periods included in the average the forecast gets smoother" because the forecast won't change as much because of the number of values in the average. The fewer number of periods included in the avera the higher the "impulse response " in the forecast. If it is important for the forecast to respond quickly to change, use fewer periods in the moving average . If it is importa for the forecast to cut through "noise" in the forecast use more periods in the moving average to dampen the noise.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!