If demand for a product in the last four months was 106 in January, 120 in February, 134 in March, and 142 in April, what is the 3-month simple moving average for May?

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To find the 3-month simple moving average for May, you need to average the demand figures for the three most recent months: February, March, and April.

First, you gather the demand data for those months:

February: 120
March: 134
April: 142

Next, you calculate the sum of these three values: 120 + 134 + 142 = 396

Then, you divide the total by the number of months to find the average: 396 ÷ 3 = 132

This computation shows that the 3-month simple moving average for May is 132, making this the correct answer. The moving average is a useful method to smooth out data over time, providing a clearer view of trends by eliminating short-term fluctuations in demand.