Here are the data for the past 21 months for actual sales of a particular product: LAST YEAR THIS YEAR January 325 260 February 440 380 March 450 370 April 440 420 May 380 440 June 460 360 July 410 375 August 370 300 September 345 380 October 510 November 560 December 540 Develop a forecast for the fourth quarter using a three-quarter, weighted moving average. Weight the most recent quarter 0.50, the second most recent 0.25, and the third 0.25. Do the problem using quarters, as opposed to forecasting separate months. (Round your answer to 2 decimal places.)

Forecast for the fourth quarter = 1083.75

Explanation:

Forecast for the fourth quarter = (350+295+355) x 0.50 + (450+455+390) x 0.25 + (305+395+340) x 0.25  = 1083.75

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