USE THE FOLLOWING INFORMATION FOR NEXT 2 QUESTIONS

YEAR SALES (UNITS)

1 250,000

2 360,000

3 400,000

4 425,000

5 480,000

11. If the above represents sales data for the last 5 years, what is the forecast for year 6 if a 2-year moving average is used?

a. 462,500

b. 432,500

c. 442,500

d. 452,500

12. Using the data above, what is the forecast for year 6 if a 2-year weighted moving average is used? Use 7 for the oldest and 3 for the most recent.

A 441,500

B 431,500

C 451500

D 461,500