In this case, the four most recent months' values are 39, 36, 40, and 42. When we average these values, we get the result 40. A four-month moving average is a forecasting method which takes the average of four most recent months' values to make prediction in the upcoming month.
This suggests that the forecast for May is 40. A four-month moving average is a reliable forecasting method, as it takes into account the most recent data and also smooths out short-term fluctuations if any. This is particularly useful in situations where there is a large amount of variability in the data, as it helps to identify any long-term trends.
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