Skip to main contentSkip to solution

For the given five values, 3.6, 4.3, 4.3, 3.4, 4.4, the three years moving averages are:

Solution

Correct Option: 4

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:

PositionValue
1st3.6
2nd4.3
3rd4.3
4th3.4
5th4.4

For the first moving average, take the first 3 values: 3.6, 4.3, 4.3

First Moving Average =3.6+4.3+4.33= \dfrac{3.6 + 4.3 + 4.3}{3}

=12.23= \dfrac{12.2}{3}

=4.067= 4.067


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 =4.3+4.3+3.43= \dfrac{4.3 + 4.3 + 3.4}{3}

=12.03= \dfrac{12.0}{3}

=4.00= 4.00


For the third moving average, move forward again. Take values at positions 3, 4, 5: 4.3, 3.4, 4.4

Third Moving Average =4.3+3.4+4.43= \dfrac{4.3 + 3.4 + 4.4}{3}

=12.13= \dfrac{12.1}{3}

=4.03= 4.03


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.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question