Weighted Average Definition, Formula & Examples
6:35
Weighted Average Definition, Formula & Examples
1.8M viewsAug 10, 2020
Study.comMichael Bernardo
1. Create a forecast using a three period simple movingaverage2. Create a forecast using a three month weighted moving averageusing weights 0.6, 0.3 and 0.1 assigning higher weight for the mostrecent period.3. Create an exponential smoothing forecast using a smoothingconstant of 0.4.4. Calculate RMSE for each of the methods, compare values andidentify the method yielding a forecast with better accuracy.MonthTired SoldJanuary515February385March1413April1925May1146June894July826August635September2
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