A company wants to forecast demand using the simple moving average. If the company uses five prior yearly sales values (i. e., year 2009 = 230, year 2010 = 250, and year 2011 =215, year 2012=240, year 2013=260), with the following weights (i. e., wt-1 =0.4, wt-2 =0.2, wt-3 =0.2, wt-4 =0.1, wt-5 =0.1), which of the following is the weighted moving average forecast for year 2014? A. 155
B. 261
C. 243
D. 283
E. 213

Forecasted sales for 2014: $235.

Explanation:

If the company uses five prior yearly sales, to forecast year 2014, we should take into account the sales from 2009 to 2013 to forecast 2014 sales.If sales of previous years are year 2009 = 230, year 2010 = 250, and year 2011 =215, year 2012=240, year 2013=260, and;weights  assigned to each previous year in order of appeareance are wt-1 =0.4, wt-2 =0.2, wt-3 =0.2, wt-4 =0.1, wt-5 =0.1, then 2014 forecasted sales are:

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