Q4 The following table contains the number of complaints rec

Q4. The following table contains the number of complaints received in the department store for first 6 months of operation:

Month

Jan

Feb

Mar

April

May

June

Complaints

36

45

81

90

108

144

a.Calculate the forecast for the month from April through June using 3month moving average?

b.What will be the forecast for the month of July using 3month moving average?

c.If actual sales for the month of July turned out to be 145, what will be the forecast for

August month using 3 month moving Average.

Solution

a)   April   Forecast = Jan + Feb + Mar

=36 + 45 + 81 / 3

=54

May Forecast = Feb + march + April

= 45 + 81 + 90 / 3

=216 / 3

=72

June = March + April + may

=81 + 90 + 108

=279 / 3

=93

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b) July complaints Moving average =90+ 108 + 144 +

=342 / 3 = 114

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c) May + June + July / 3

= 108 + 144 + 145

=397 / 3

=132.33

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