Three consecutive weeks had meals served: 85, 95, and 105. Using a 3-period moving average, what is the forecast for the next week?

Three consecutive weeks had meals served: 85, 95, and 105. Using a 3-period moving average, what is the forecast for the next week?

• A. 90 meals
• B. 100 meals
• C. 95 meals
• D. 105 meals

Answer: (C)

Using a 3-period moving average means the forecast for the next week is the average of the meals served in the most recent three weeks. The three weeks reported are 85, 95, and 105 meals. The average is (85 + 95 + 105) / 3 = 285 / 3 = 95. So the forecast for the next week is 95 meals. The other numbers would come from using fewer periods or just the latest week, which isn’t how a 3-period moving average is calculated.

Using a 3-period moving average means the forecast for the next week is the average of the meals served in the most recent three weeks. The three weeks reported are 85, 95, and 105 meals. The average is (85 + 95 + 105) / 3 = 285 / 3 = 95. So the forecast for the next week is 95 meals. The other numbers would come from using fewer periods or just the latest week, which isn’t how a 3-period moving average is calculated.