For the given five values, 3.6, 4.3, 4.3, 3.4, 4.4, the three years moving averages are:
For the given five values, 3.6, 4.3, 4.3, 3.4, 4.4, the three years moving averages are:
Solution
A 3-period moving average takes 3 consecutive values, adds them up, and divides by 3. This process slides forward by one position each time.
The given values are:
| Position | Value |
|---|---|
| 1st | 3.6 |
| 2nd | 4.3 |
| 3rd | 4.3 |
| 4th | 3.4 |
| 5th | 4.4 |
For the first moving average, take the first 3 values: 3.6, 4.3, 4.3
First Moving Average
For the second moving average, move forward by 1 position. Take values at positions 2, 3, 4: 4.3, 4.3, 3.4
Second Moving Average
For the third moving average, move forward again. Take values at positions 3, 4, 5: 4.3, 3.4, 4.4
Third Moving Average
The three moving averages are: 4.067, 4.00, 4.03
Note: Options showing 12.2, 12.0, 12.1 represent the sums, not the averages.
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