Using the data below, what is the 3 period moving average forecast for the 4th week?

Week1, Time Series Value=11
Week2, Time Series Value=5
Week3, Time Series Value=12
Week4, Time Series Value=18

1 answer

To calculate the 3-period moving average for the 4th week, you'll take the average of the time series values from the 3 preceding weeks (Week 1, Week 2, and Week 3).

The values for the relevant weeks are:

  • Week 1: 11
  • Week 2: 5
  • Week 3: 12

Now, calculate the moving average:

\[ \text{Moving Average} = \frac{\text{Week 1} + \text{Week 2} + \text{Week 3}}{3} = \frac{11 + 5 + 12}{3} \]

Calculating that:

\[ = \frac{28}{3} \approx 9.33 \]

Thus, the 3-period moving average forecast for the 4th week is approximately 9.33.