Monthly sales of storage sheds at Wallace Garden supply are shown in the following table. Using the 3-month moving average forecasting method (simple average), what is your forecast of December sales? Actual Month Sales January February March April May June July August September October November December? O 15.2 16.7 20.67 None of the above 10 12 16 13 17 19 15 20 22 19 21
Monthly sales of storage sheds at Wallace Garden supply are shown in the following table. Using the 3-month moving average forecasting method (simple average), what is your forecast of December sales? Actual Month Sales January February March April May June July August September October November December? O 15.2 16.7 20.67 None of the above 10 12 16 13 17 19 15 20 22 19 21
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![### Monthly Sales Forecast for Storage Sheds at Wallace Garden Supply
The table below depicts the monthly sales of storage sheds at Wallace Garden Supply over the course of a year. We aim to forecast the sales for December using the 3-month moving average forecasting method.
#### Monthly Sales Data
| Month | Actual Sales |
|-----------|--------------|
| January | 10 |
| February | 12 |
| March | 16 |
| April | 13 |
| May | 17 |
| June | 19 |
| July | 15 |
| August | 20 |
| September | 22 |
| October | 19 |
| November | 21 |
| December | ? |
To forecast the sales for December using the 3-month moving average method, we calculate the average of actual sales from the preceding three months, i.e., September, October, and November.
#### Calculation Steps
1. **Sales in September:** 22
2. **Sales in October:** 19
3. **Sales in November:** 21
\[
\text{3-Month Moving Average} = \frac{\text{Sales in September} + \text{Sales in October} + \text{Sales in November}}{3}
\]
\[
\text{3-Month Moving Average} = \frac{22 + 19 + 21}{3}
\]
\[
\text{3-Month Moving Average} = \frac{62}{3} \approx 20.67
\]
#### Forecasted December Sales
Based on the 3-month moving average method, the forecasted number of sales for December is approximately **20.67**.
#### Answer Options
A. 15.2
B. 16.7
C. 20.67
D. None of the above
The correct answer to the forecast of December sales is **20.67**.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0741cfb5-915d-4457-ba0d-754269ea918b%2F0ce628bd-b0b8-46c4-aa3e-9338eac6bdfe%2Fx7rl8kj_processed.png&w=3840&q=75)
Transcribed Image Text:### Monthly Sales Forecast for Storage Sheds at Wallace Garden Supply
The table below depicts the monthly sales of storage sheds at Wallace Garden Supply over the course of a year. We aim to forecast the sales for December using the 3-month moving average forecasting method.
#### Monthly Sales Data
| Month | Actual Sales |
|-----------|--------------|
| January | 10 |
| February | 12 |
| March | 16 |
| April | 13 |
| May | 17 |
| June | 19 |
| July | 15 |
| August | 20 |
| September | 22 |
| October | 19 |
| November | 21 |
| December | ? |
To forecast the sales for December using the 3-month moving average method, we calculate the average of actual sales from the preceding three months, i.e., September, October, and November.
#### Calculation Steps
1. **Sales in September:** 22
2. **Sales in October:** 19
3. **Sales in November:** 21
\[
\text{3-Month Moving Average} = \frac{\text{Sales in September} + \text{Sales in October} + \text{Sales in November}}{3}
\]
\[
\text{3-Month Moving Average} = \frac{22 + 19 + 21}{3}
\]
\[
\text{3-Month Moving Average} = \frac{62}{3} \approx 20.67
\]
#### Forecasted December Sales
Based on the 3-month moving average method, the forecasted number of sales for December is approximately **20.67**.
#### Answer Options
A. 15.2
B. 16.7
C. 20.67
D. None of the above
The correct answer to the forecast of December sales is **20.67**.
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