KID

ing Wallace Garden Supply is more accurate.

:5-17 Data collected on the yearly demand for 50-pound

bags of fertilizer at Wallace Garden Supply are

shown in the following table. Develop a 3-year mov-

ing average to forecast sales. Then estimate demand

again with a weighted moving average in which

sales in the most recent year are given a weight of 2

and sales in the other 2 years are each given a weight

of 1. Which method do you think is better?

YEAR

1

2

3

4

5

6

7

DEMAND FOR FERTILIZER

(1,000s OF BAGS)

4

6

4

5

10

8

7

(Continued on next page)/nYEAR

8

9

10

11

DEMAND FOR FERTILIZER

(1,000s OF BAGS)

9

12

14

15

OIX