Consider the following time series: Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sales 4 6 5 8 9 5 4 3 7 8 Calculate a three-year moving average (MA(3)) for the second subset of three years (i.e. 2011-2013). Round your final answer to two decimal places.
Question
Consider the following time series: Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sales 4 6 5 8 9 5 4 3 7 8 Calculate a three-year moving average (MA(3)) for the second subset of three years (i.e. 2011-2013). Round your final answer to two decimal places.
Solution
To calculate a three-year moving average (MA(3)) for the second subset of three years (i.e. 2011-2013), you need to add up the sales for those years and then divide by 3.
Sales for 2011 = 6 Sales for 2012 = 5 Sales for 2013 = 8
So, the three-year moving average for 2011-2013 is:
(6 + 5 + 8) / 3 = 19 / 3 = 6.33
So, the three-year moving average for the years 2011-2013 is 6.33 (rounded to two decimal places).
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