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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 On a graph, the three-year moving average (MA(3)) you calculated for the first subset of three years (i.e. 2010-2012) should be plotted on 2011 (i.e. half-way between the three years). True False

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 On a graph, the three-year moving average (MA(3)) you calculated for the first subset of three years (i.e. 2010-2012) should be plotted on 2011 (i.e. half-way between the three years).

True False

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Solution

False. The three-year moving average for the first subset of three years (2010-2012) should be plotted on 2012, which is the last year of the subset. The moving average is typically plotted at the end of the period it covers, not in the middle.

Similar Questions

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 third subset of three years (i.e. 2012-2014). Round your final answer to two decimal places.

You can smooth a series using moving average if trend is not observed after plotting a time series data. True False

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