Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec. Last year This year JAN FEB MAR APR MAY JUN JUL 100 125 135 175 185 200 150 125 135 135 190 200 190 Forecast for the third quarter AUG SEP OCT NOV DEC 140 130 200 225 250

Practical Management Science
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Chapter2: Introduction To Spreadsheet Modeling
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Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st
quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.
Last year
This year
JAN
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
100 125 135 175 185 200 150 140 130
200 225 250
125 135 135 190
200 190
Forecast for the third quarter
Transcribed Image Text:Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec. Last year This year JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 100 125 135 175 185 200 150 140 130 200 225 250 125 135 135 190 200 190 Forecast for the third quarter
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Industry demand, supply, and price changes can all be predicted with a little bit of research and planning, which is what forecasting is all about. Forecasting the future of an industry requires researching the competitors, gathering information from suppliers and assessing historical trends.

A moving average may be used to smooth out changes in demand for a product and improve forecasts when the demand is stable (increasing or decreasing slowly) and not cyclical.

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