SCENARIO 16-4
The number of cases of merlot wine sold by a Paso Robles winery in an 8-year period follows.
-Referring to Scenario 16-3,if a three-month moving average is used to smooth this series,what would be the last calculated value?
A)72
B)93
C)114
D)126

Question

SCENARIO 16-4
The number of cases of merlot wine sold by a Paso Robles winery in an 8-year period follows. 
-Referring to Scenario 16-3,if a three-month moving average is used to smooth this series,what would be the last calculated value?
A)72 
B)93 
C)114 
D)126

Quizplus · Accepted Answer

To calculate the three-month moving average, we take the average of the sales for the current month and the two months prior. Starting with year 2, the moving averages are as follows:

Year 2: (101 + 90 + 81) / 3 = 90.67 
Year 3: (87 + 78 + 72) / 3 = 79 
Year 4: (73 + 68 + 66) / 3 = 69 
Year 5: (70 + 64 + 61) / 3 = 65 
Year 6: (63 + 61 + 64) / 3 = 62.67 
Year 7: (66 + 71 + 68) / 3 = 68.33 
Year 8: (78 + 81 + 93) / 3 = 84

Therefore, the last calculated value using the three-month moving average is 84.

SCENARIO 16-4 the Number of Cases of Merlot Wine Sold by a by a Paso