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

Multiple Choice

Suppose a three-period weighted average is being used to forecast demand. Weights for the periods are as follows: w_t-3 = 0.2, w_t-2 = 0.3 and w_t-1 = 0.5. Demand observed in the previous three periods was as follows: A_t-3 = 2,200, A_t-2 = 1,950, A_t-1 = 2,050. What will be the demand forecast for period t?

A) 2,000
B) 2,095
C) 1,980
D) 2,050
E) 1,875