Data collected on the yearly demand for 50-poundbags 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 2and sales in the other 2 years are each given a weight of 1. Which method do you think is best?
|
Years
|
Bag
|
|
1
|
4
|
|
2
|
6
|
|
3
|
4
|
|
4
|
5
|
|
5
|
10
|
|
6
|
8
|
|
7
|
7
|
|
8
|
9
|
|
9
|
12
|
|
10
|
14
|
|
11
|
15
|