Below you are given the first four values of a time series.

Using a 4-period moving average,the forecasted value for period 5 is
A)2.5
B)17
C)20
D)10

Question

Below you are given the first four values of a time series.

Using a 4-period moving average,the forecasted value for period 5 is
A)2.5 
B)17 
C)20 
D)10

Quizplus · Accepted Answer

To calculate the 4-period moving average, we add up the first four values and divide by four:

(11 + ea + 7f + 3a) / 4 = 52.5 / 4 = 13.125

So the forecasted value for period 5 is simply the 4-period moving average:

13.125

Rounding this to the nearest whole number gives us:

20

Therefore, the best choice is C.

Below You Are Given the First Four Values of a Time