# Forcasting Checkpoint

Topics: Moving average Pages: 2 (268 words) Published: March 17, 2013
Lisa Brown
Hsm/ 260
Week 5 – Forecasting Checkpoint
3/8/13

Exercise 9.1

20X1 \$5,250,000
20X2 \$5,500,000
20X3 \$6,000,000
20X4 \$6,750,000

Moving Averages
20X2-X4 \$18,250,000 / 3 = \$6,083,333

Weighted Moving Averages
Fiscal Year Expenses Weight Weighted Score
20X2 \$5,500,000 1 \$5,500,000
20X3 \$6,000,000 2 \$12,000,000
20X4 \$6,750,000 3 \$20,250,000
__       ___________
6 \$37,750,000
20X5 \$37,750,000 /6 = \$6,291,667

Exponential Smoothing
NF = \$6,300,000 + 0.95(\$6,750,000 - \$6,300,000)
= \$6,300,000 + 0.95(45,000)
= \$6,300,000 + (42,750)
= \$6,342,750

Exercise 9.3

The following data represent total revenues (from all sources) for the Palmdale Human Service Agency for the past four fiscal years:

20X1 \$15,000,000
20X2 \$14,250,000
20X3 \$14,000,000
20X4 \$13,500,000

Moving Averages
20X2-X4 \$41,750,000 / 3 = \$13,916,667

Weighted Moving Averages
Fiscal Year Expenses Weight Weighted Score
20X2 \$14,250,000 1 \$14,250,000
20X3 \$14,000,000 2 \$28,000,000
20X4 \$13,500,000 3 \$40,500,000
__       ___________
6                       \$82,750,000
20X5       \$82,750,000/6 = \$13,791,667

Exponential Smoothing
NF = \$13,000,000 + 0.95(\$13,500,000 - \$13,000,000)
= \$13,000,000 + 0.95(500,000)
= \$13,000,000 + (475,000)
= \$13,475,000

Financial trends affect forecasting by preparing and planning for the future, budgeting the money right, deciding what program is working or not working.