Data collected on the yearly demand for 50-pound
bags of fertilizer at Wallace Garden Supply are
shown in the following table. Develop a 3-year moving
average to forecast sales. Then estimate demand
again with a weighted moving average in which
sales in the most recent year are given a weight of 2
and sales in the other 2 years are each given a weight
of 1. Which method do you think is best?
DEMAND FOR FERTILIZER
YEAR (1,000S OF BAGS)
Thanks for allowing me to work on your questions. Here, let's define variable first. For year x, x1=1,x2=2,x3=3,x4=4,x5=5,x6=6,x7=7,x8=8,x9=9,x10=10,x11=11. Meanwhile, demand for fertilizer y, ...
This solution provides explanation how to perform forecast by using moving average or weighted average.