The following table shows the actual demand observed over the last 11 years:         year    1   2    3   4     5    6    7    8     9   10   11     demand  8   9   4  10   12   8    13  14   8    11   7 b) Using the 3 year moving average, provide the forecasts from periods 4 through 12 (round your responses to one decimal place)       Year      4   5   6    7   8   9  10   11   12 forecast    [_]  [_] [_] [_] [_] [_]  [_]  [_]  [_]

Understanding Business
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ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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The following table shows the actual demand observed over the last 11 years:

        year    1   2    3   4     5    6    7    8     9   10   11

    demand  8   9   4  10   12   8    13  14   8    11   7

b) Using the 3 year moving average, provide the forecasts from periods 4 through 12 (round your responses to one decimal place)

 

    Year      4   5   6    7   8   9  10   11   12

forecast    [_]  [_] [_] [_] [_] [_]  [_]  [_]  [_]

Expert Solution
Step 1

We can calculate a three-year forecast by using the formula-

Three-year moving average method ( Year 4) = (Demand for year 1 + Demand for year 2 + Demand for year 3) / 3

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