Question

given the data 63, 64, 66, 67, 67, 69,71,72 find the forecast for the eighth period using Simple average.​

Answer 1

Answer:

Given the data 63, 64, 66, 67, 67, 69, 71, 72 find the forecast for the eighth period using simple average, and 3 period moving average? Is it a good forecast? Why or why not? Simple average = 67.375, three period moving average forecast = (69 + 71 + 72)/3 = 70.666.

Answer 2

Given,

The data of the forecast of the previous eight periods given are as follows 63, 64, 66, 67, 67, 69, 71, 72.

To Find,

We are required to find the forecast for the eighth period using the Simple average method.

Solution,

• A simple average forecast is equal to the Average of a historical data set of observations/records of the N period.
• N is equal to the Historical Period based on which the average is required to be calculated.
• The sum of all the observations is then divided by the number of years those observations have been taken.
• This then gives a forecast of the average figure for the new period for which the average was being calculated.
• The average is generally taken either for three or five years.
• But according to the question, we are given the data for eight years where we are told to find out the forecast for the ninth period.
• So the number of periods to be taken is the previous eight years preceding the year for which the forecast is to be made.

63, 64, 66, 67, 67, 69,71,72

Sum of all the observations =  63+64+66+67+67+69+71+72

                                              = 539

Forecast for the ninth period = 539/8

                                                    = 67.375

                                                    = 67

Hence, the required average forecast is 67.

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