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If the actual demand for the months of January, February and March are 10, 11 and 15 units respectively; the forecast for April using 3-period weighted moving average technique is (weights are 0.2, 0.3, 0.5) Group of answer choices

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Answer: 12.8 units

Explanation:

Using the weighted moving average technique means using calculating a weighted average of the demands for the past 3 months using their weights and demand.

April forecast = (January sales * January weight) + (February sales * February weight) + (March sales * March weight)

= (10 * 0.2) + (11 * 0.3) + (15 * 0.5)

= 2 + 3.3 + 7.5

= 12.8 units

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