Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1stquarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.Last yearThis yearJANFEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC100 125 135 175 185 200 150 140 130200 225 250125 135 135 190200 190Forecast for the third quarter

Answered: Given the following history, use a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st
quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.
Last year
This year
JAN
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
100 125 135 175 185 200 150 140 130
200 225 250
125 135 135 190
200 190
Forecast for the third quarter

Expert Solution

Step 1

Industry demand, supply, and price changes can all be predicted with a little bit of research and planning, which is what forecasting is all about. Forecasting the future of an industry requires researching the competitors, gathering information from suppliers and assessing historical trends.

A moving average may be used to smooth out changes in demand for a product and improve forecasts when the demand is stable (increasing or decreasing slowly) and not cyclical.