The following are the values of a time series for the first four time periods: Using a four-period moving average,the forecasted value for time period 5 is:
A)25.3
B)25.7
C)25.0
D)26.0

Question

The following are the values of a time series for the first four time periods:  Using a four-period moving average,the forecasted value for time period 5 is:
A)25.3 
B)25.7 
C)25.0 
D)26.0

Quizplus · Accepted Answer

To calculate the four-period moving average, we take the average of the first four values:

(14 + 19 + 24 + 23) / 4 = 80 / 4 = 20

So the forecasted value for period 5 would be:

(19 + 24 + 23 + x) / 4 = 20

Solving for x, we get:

19 + 24 + 23 + x = 80
x = 14

Therefore, the forecasted value for period 5 is:

(19 + 24 + 23 + 14) / 4 = 80 / 4 = 20

Answer choice C (25.0) is not the correct answer.

The Following Are the Values of a Time Series for the First