Using the data below, what is the 2 period moving average forecast for the 3rd week?

Week1, Time Series Value=5
Week2, Time Series Value=25
Week3, Time Series Value=22
Week4, Time Series Value=17

1 answer

To calculate the 2-period moving average forecast for the 3rd week, you take the average of the values from the two preceding weeks (Week 1 and Week 2).

Here are the values:

  • Week 1: 5
  • Week 2: 25

The 2-period moving average forecast for Week 3 is calculated as follows:

\[ \text{Moving Average} = \frac{\text{Value of Week 1} + \text{Value of Week 2}}{2} = \frac{5 + 25}{2} = \frac{30}{2} = 15 \]

Thus, the 2-period moving average forecast for the 3rd week is 15.