Podcast
Questions and Answers
What is the purpose of using a 3-period weighted moving average to forecast demand data?
What is the purpose of using a 3-period weighted moving average to forecast demand data?
- To give more weight to the oldest time period for a stable forecast.
- To give equal weight to all three time periods for a balanced forecast.
- To give equal weight to the most recent and oldest time periods for a balanced forecast.
- To give more weight to the most recent time period for a more responsive forecast. (correct)
For forecasting demand for period 7 using the 3-period weighted moving average, which periods would be used in the calculation?
For forecasting demand for period 7 using the 3-period weighted moving average, which periods would be used in the calculation?
- 7, 6, and 5 (correct)
- 10, 9, and 8
- 8, 7, and 6
- 6, 5, and 4
Which period would the weight 5 be assigned to when forecasting demand for period 7 using the 3-period weighted moving average?
Which period would the weight 5 be assigned to when forecasting demand for period 7 using the 3-period weighted moving average?
- 6 (correct)
- 10
- 8
- 9
What happens when a 3-period weighted moving average assigns higher weights to more recent data?
What happens when a 3-period weighted moving average assigns higher weights to more recent data?
What would be the weighted moving average for period 7 using the given weights?
What would be the weighted moving average for period 7 using the given weights?
If the student wanted to forecast demand for period 8 using the same weights, which periods would be used in the calculation?
If the student wanted to forecast demand for period 8 using the same weights, which periods would be used in the calculation?
In a 3-period weighted moving average, if the weights are chosen as 4, 3, and 2 respectively, which period would the weight 4 be assigned to when forecasting demand for period 7?
In a 3-period weighted moving average, if the weights are chosen as 4, 3, and 2 respectively, which period would the weight 4 be assigned to when forecasting demand for period 7?
If the student decided to change the weights to 5, 4, and 2 for a 3-period weighted moving average, what would be the weighted average for period 7?
If the student decided to change the weights to 5, 4, and 2 for a 3-period weighted moving average, what would be the weighted average for period 7?
Study Notes
Weighted Moving Average for Demand Forecasting
- The purpose of using a 3-period weighted moving average is to forecast demand data.
Calculation Periods
- When forecasting demand for period 7 using the 3-period weighted moving average, periods 4, 5, and 6 would be used in the calculation.
Weight Assignment
- The weight 5 would be assigned to period 6 when forecasting demand for period 7 using the 3-period weighted moving average.
Weight Impact on Forecasting
- When a 3-period weighted moving average assigns higher weights to more recent data, it gives more importance to recent trends and patterns in demand, resulting in a more accurate forecast.
Weighted Moving Average Calculation
- The weighted moving average for period 7 using the given weights would be the sum of the weighted values of periods 4, 5, and 6, divided by the sum of the weights.
Forecasting for Future Periods
- To forecast demand for period 8 using the same weights, periods 5, 6, and 7 would be used in the calculation.
Weight Assignment Variation
- If the weights are chosen as 4, 3, and 2 respectively, the weight 4 would be assigned to period 5 when forecasting demand for period 7.
Alternative Weight Scenario
- If the student decided to change the weights to 5, 4, and 2 for a 3-period weighted moving average, the weighted average for period 7 would be recalculated using the new weights.
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Description
Test your knowledge on forecasting demand using a 3-period weighted moving average. Determine the periods used in the calculation and the assignment of weights for forecasting demand for a specific period.
