Question at position 31 ONLY SUBMIT NUMBER ANSWERS (NO TEXT) Compute the sales forecast for the month of January using the 5-month simple moving average forecasting technique and the following data: Monthly sales for the RUOK Company for the last 6 months are as follows: [table]
Month | Units July | 135000 August | 165000 September | 120000 October | 135000 November | 150000 December | 180000
[/table]AnswerONLY SUBMIT NUMBER ANSWERS (NO TEXT) Compute the sales forecast for the month of January using the 5-month simple moving average forecasting technique and the following data: Monthly sales for the RUOK Company for the last 6 months are as follows: [table]
Month | Units July | 135000 August | 165000 September | 120000 October | 135000 November | 150000 December | 180000
[/table][input]

Question

BlackTom AI · Accepted Answer

First, I will restate the problem setup to ensure clarity: we need to compute the January forecast using a 5-month simple moving average, based on the last six months of data provided (July to December). The values for the last five months used in the forecast are August, September, October, November, and December: 165000, 120000, 135000, 150000, and 180000 units respectively.

Now, evaluate what a 5-month simple moving average entails: you take the average of the five most recent observed values and use that as the forecast for the next period (January). This method smooths short-term fluctuations by distributing equal weight to the last five months.

Option analysis:
- Option presented: 150000
  The average of the five values is calculated as (165000 + 120000 + 135000 + 150000 + 180000) / 5. Adding these gives 750000, and dividing by 5 yields 150000. Therefore, this option aligns exactly with the 5-month SMA result.

- Any alternative numbers (if provided) would need to meet the same SMA calculation: they would have to equal the same average of the five months unless we were using a different data window or a different forecasting method. Since the data window for January is fixed to the previous five months (Aug–Dec) and the SMA is defined as a simple average, deviations would indicate either a different window length or a miscalculation.

In summary, applying the 5-month simple moving average to the months August through December yields a forecast of 150000 units for January, which matches the given numerical option.

View Explanation

Log in for full answers

Similar Questions

Given the record of weekly cash flows below, calculate the four-week moving averages for this data for a forecast of week 6. Week 1 $100,000 Week 2 $125,000 Week 3 $145,000 Week 4 $130,000 Week 5 $110,000

A company forecasts next month’s demand by averaging the past three months’ actual sales. This approach is an example of:

When the actual demand data for Day 6 became available, the manager asked for the forecast error. You calculated it as _____________ rolls. Hints: - Calculate the moving average first. - Round the answer to two decimal place. For example, 11.11.

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler