Answer:
a) Demand for next week (2-weeks-moving-average) = 11 dozens
a) Demand for next week (3-weeks-moving-average) = 9 dozens
Step-by-step explanation:
The moving average used for forecast takes past values and average them to predict future values fo the variable.
Is calculated by taking the arithmetic mean of a given set of values. In this case, we will forecast using 2 and 3 weeks.
In the case of 2 weeks moving average, we take the last two weekly sales and average them:
[tex]S_{n+1}=\dfrac{S_n+S_{n-1}}{2}=\dfrac{12+10}{2}=\dfrac{22}{2}=11[/tex]
For the case of 3 weeks moving average, we take the last three weekly sales and average them:
[tex]S_{n+1}=\dfrac{S_n+S_{n-1}+S_{n-2}}{3}=\dfrac{12+10+5}{3}=\dfrac{27}{3}=9[/tex]
