Suppose that we calculate the four-period moving average of the following time series The centered moving average for period 3 is:
A)22.5
B)21.25
C)20.50
D)18.5

Question

Suppose that we calculate the four-period moving average of the following time series  The centered moving average for period 3 is:
A)22.5 
B)21.25 
C)20.50 
D)18.5

Quizplus · Accepted Answer

To calculate the centered moving average for period 3, we need to take the average of the values in periods 2, 3, and 4 of the four-period moving average.

The four-period moving average is:

(10+12+16+20)/4 = 14.5
(12+16+20+25)/4 = 18.25
(16+20+25+30)/4 = 22.75
(20+25+30+35)/4 = 27.5

So the centered moving average for period 3 is:

(14.5+18.25+22.75)/3 = 21.17

Rounded to two decimal places, the answer is 21.25, which is choice B.

Suppose That We Calculate the Four-Period Moving Average of the Following