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) 24.5
B) 25.5
C) 26.5
D) 27.5

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) 24.5 
B) 25.5 
C) 26.5 
D) 27.5

Quizplus · Accepted Answer

To calculate the four-period moving average, we need to sum up the values for the first four time periods and divide by 4.
(11 + 8 + 14 + 25) / 4 = 14.5
Therefore, the forecasted value for time period 5 would be the moving average of the values for time periods 2 to 5:
(8 + 14 + 25 + X) / 4 = 14.5
Simplifying the equation:
X = 25.5
Hence, the best choice is B, with the forecasted value for time period 5 being 25.5.

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