Suppose a Four-Period Weighted Average Is Being Used to Forecast

Multiple Choice

Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: w_t-4 = 0.1, w_t-3 = 0.2, w_t-2 = 0.3 and w_t-1 = 0.4. Demand observed in the previous four periods was as follows: A_t-4 = 380, A_t-3 = 410, A_t-2 = 390, A_t-1 = 400. What will be the demand forecast for period t?

A) 402
B) 397
C) 399
D) 393
E) 403