Question

Consider the following time series

Period Time series

1 48

2 41

3 37

4 32

5 36

6 31

7 43

The four-period centered moving average to time period 3 is

1. 37

2. 36:67

3. 35

4. 38

5. 35:25

Answer 1

The 4-period moving average is found by counting the first four entries and finding the average.

$First \\ =\frac{48+41+37+32}{4}\\ =\frac{79}{2}\\ =39.5$

$Second\\ = \frac{41+37+32+36}{4}\\ = \frac{73}{2}\\ =36.5$

The centered

$= \frac{39.5+36.5}{2}\\ =38$

Fourth option is correct