John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 3,000 pancakes in May, 2,200 pancakes in June, and 1,000 pancakes in July, what should be the forecast for August? A. 3,767 B. 1,622 C. 2,067 D. 2,400 E. 2,511

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joaobezerra joaobezerra · Answer 1 · 2019-11-12T23:38:32+01:00

Answer:

B. 1,622

Step-by-step explanation:

The weighed average is each value multiplied by it's weight divided by the sum of the weights.

In this problem we have that:

Weight of 5 to the previous month demand. The number of pancakes in July was 1000.

Weight of 3 to the demand of two months ago. The number of pancakes in June was 2200.

Weight of 1 to the demand of three months ago. The number of pancakes in May was 3000.

So, the forecast for August is:

[tex]M = \frac{5*1000 + 3*2200 + 1*3000}{9} = 1622.2[/tex]

The forecast for August is a demand of 1622 pancakes. Letter B.