All organizations build databases required to make forecasting decisions, such as sales, market share, and customer demand. Making these forecasting decisions involves the use of forecasting models and tools. One tool is the moving average forecasting function in Excel.
In this assignment, you will determine the moving averages for the sale of gasoline for a company. To get started, download this Excel spreadsheet (Attached) download this Excel spreadsheet. The data required for the weekly gasoline sales are included in the spreadsheet.
Follow the instructions provided here to calculate the 3, 4, and 6-week moving averages for the sale of gasoline.
In the Excel spreadsheet, select the Data tab.
From the Analysis group, select the Data Analysis option.
When the Data Analysis dialog box appears, choose Moving Average and click OK.
When the Moving Average dialog box appears:
Enter B2:B13 in the Input Range box.
Enter 3 in the Interval box.
Enter C2 in the Output Range Box.
Click OK.
Note: To solve for 4- and 6-week moving average, repeat the steps, and enter 4 or 6 in the Interval box in step 4. Remember to enter into the Output Range Box C3 for 4-week moving average and C4 for 6-week moving average.
What is the 3-week moving average?
What is the 4-week moving average?
What is the 6-week moving average?
Explain the implications of your moving average analyses. Insert as a text box in the Excel file.
In a brief narrative, describe the importance of the use of this tool for business and industry. Insert this narrative as a text box in the Excel file.