the following table shows the data for the sales of a new music album at a store for 4 consecutive months…

the following table shows the data for the sales of a new music album at a store for 4 consecutive months. find the forecast for the next month using a 3 - month moving average.\n|month|1|2|3|4|\n|sales|112|105|125|118|\nthe forecast for the next month is more than 90 but less than or equal to 100.\nthe forecast for the next month is more than 100 but less than or equal to 110.\nthe forecast for the next month is more than 110 but less than or equal to 120.\nthe forecast for the next month is more than 120 but less than or equal to 130.

the following table shows the data for the sales of a new music album at a store for 4 consecutive months. find the forecast for the next month using a 3 - month moving average.\n|month|1|2|3|4|\n|sales|112|105|125|118|\nthe forecast for the next month is more than 90 but less than or equal to 100.\nthe forecast for the next month is more than 100 but less than or equal to 110.\nthe forecast for the next month is more than 110 but less than or equal to 120.\nthe forecast for the next month is more than 120 but less than or equal to 130.

Answer

Explanation:

Step1: Identify the relevant data

We use the sales of the last 3 months (Month 2, Month 3, Month 4). So the data points are 105, 125, 118.

Step2: Calculate the 3 - month moving average

The formula for the moving average is $\frac{\text{Sum of the data points}}{\text{Number of data points}}$. Here, the sum is $105 + 125+118=348$, and the number of data points is 3. So the moving - average is $\frac{348}{3}=116$.

Answer:

The forecast for the next month is more than 110 but less than or equal to 120.