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Suppose that you are using the? four-period weighted moving average forecasting method to forecast sales and...

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General Management

Suppose that you are using the? four-period weighted movingaverage forecasting method to forecast sales and you know thatsales will be decreasing every period for the foreseeable future.What of the following would be the best set of weights to use?(listed in order from the most recent period to four periods? ago,respectively)?

A.0.00, 0.00,? 0.00, 1.00

B.?0.25, 0.25,? 0.25, 0.25

C.?1.00, 0.00,? 0.00, 0.00

D.0.10, 0.20,? 0.30, 0.40

E. ?0.40, 0.30,? 0.20, 0.10

Answer & Explanation Solved by verified expert
4.5 Ratings (1180 Votes)
There is a steady trend in decrease in sales It is unknown whether rate of decrease in sales is constant increasing or decreasing However due to continuous declining trend forecast for next period will be most influenced by sales of Last period followed by    See Answer
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