Using the table “Gasoline Sales Time Series”, calculate the forecast for gasoline sales (in thousands) for Week 13 using a three day moving average.
Gasoline Sales Time Series
Week Sales (000’s of gallons)
1 17
2 21
3 19
4 23
5 18
6 16
7 20
8 18
9 22
10 20
11 15
12 22
19.0
To calculate the forecast for gasoline sales for Week 13 using a three-day moving average, follow these steps:
1. Identify the three most recent weeks, including Week 13 (i.e., Weeks 10, 11, and 12).
- Week 10: Sales = 20 (000's of gallons)
- Week 11: Sales = 15 (000's of gallons)
- Week 12: Sales = 22 (000's of gallons)
2. Calculate the average of these three weeks:
Average = (20 + 15 + 22) / 3 = 57 / 3 = 19 (000's of gallons)
3. The forecast for Week 13 using the three-day moving average is 19,000 gallons.
Therefore, the forecast for gasoline sales for Week 13 is 19,000 gallons.