Using a three-day moving average, calculate the forecast for Monday of the second week given the last three days sold were 135, 185, and 190.

Using a three-day moving average, calculate the forecast for Monday of the second week given the last three days sold were 135, 185, and 190.

• A. 170
• B. 178
• C. 183
• D. 196

Answer: (A)

A three-day moving average forecast uses the average of the most recent three actual values. Take the last three days: 135, 185, and 190. Add them to get 510, then divide by 3 to get 170. So the forecast for Monday is 170 units. This equal-weight approach means each of the three most recent days contributes equally, which is why the result is 170 rather than 178, 183, or 196.

A three-day moving average forecast uses the average of the most recent three actual values. Take the last three days: 135, 185, and 190. Add them to get 510, then divide by 3 to get 170. So the forecast for Monday is 170 units. This equal-weight approach means each of the three most recent days contributes equally, which is why the result is 170 rather than 178, 183, or 196.