Question

 1. Given the data below, compute for the following:

 a) Forecasts for P5 to P12 using a 4-period simple moving average

 b) Forecasts for P5 to P12 using a 4-month weighted moving average with the following weights:

 Most recent period =0.40

 2nd most recent period = 0.30

 3rd most recent period = 0.20

 4th most recent period = 0.10

c) Assuming a forecast of 5,000 units for Period 4 and a = 0.30, compute for the forecasts for P5

 to P12.

 d) Using linear trend forecasting, determine the:

 - equation of the linear trend line

 - compute for the forecast for P5 to P12.

Answer 1

Please see the table below. Part (a), (b) and (c) have been answered in the table below. The yellow colored cells contain your answer. Adjacent cells in blue contain the excel formula used to get the values.

Part (d)

Equation of trendline : y = 60x + 4,700

Forecast as per trendline:

Period (x)	Forecast (60x + 4,700)
5	5,000
6	5,060
7	5,120
8	5,180
9	5,240
10	5,300
11	5,360
12	5,420