Question

In: Finance

Use the information in the 1st table (Weights & Periods) to fill in the missing values...

Use the information in the 1st table (Weights & Periods) to fill in the missing values in the second table

Weights Applied Period
5 Last month
3 Two months ago
1 Three months ago
Month Actual Sales 3-Month Weighted Moving Average
January 100
February 150
March 130
April 160 (  (  * 100 ) + (  *  ) + (  *  ) /  = 133
May 120 (  (  * 150 ) + (  *  ) + (  *  ) /  = 133
June 110 (  (  * 130 ) + (  *  ) + (  *  ) /  = 133
July 130 (  (  * 160 ) + (  *  ) + (  *  ) /  = 133

Solutions

Expert Solution

In any month, projected sales = Weighted Average of previous three months sales

Hence, your answers will be :

Month Actual Sales 3-Month Weighted Moving Average
January 100
February 150
March 130
April 160 ((1* 100) + (3*150) + (5*130) / 9) = 133
May 120 ((1*150) + (3*130) + (5*160) / 9)  = 149
June 110 ((1*130) + (3*160) + (5*120) / 9)  = 134
July 130 ((1*160) + (3*120) + (5*110) / 9)  = 119

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