Develop a two-period weighted moving average forecast for periods 12-15.

use weights of 0.7 and 0.3. with the most recent observations weighted higher.

period demand
10 274
11 320
12 426
13 294
14 473

calculate the forecasts for periods 12-15 by using a two-period weighted moving average model.

period demand forecast
10 274
11 320
12 426
13 294
14 473
15

PeriodForecast

12306.2

13394.2

14333.6

15419.3

Explanation:

                                                  Weights

PeriodDemand      older 0.3        recent 0.7    Forecast

10          274  

11          320  

12           42682.2(274 x 30%)  224(320 x 70%)       306.2

13           29496(320x30%)       298.2(426x70%)394.2

14           473127.8(426x30%)   205.8(294x70%)       333.6

15                   88.2(294x30%)    331.1(473x70%)         419.3

From the given infroamtion period n forecast will be:

(n-1) x 70% + (n-2) x 30%

Period 13 = Period 12 x 70% + Period 11 x 30%