Question

The sales of Wallace Company for 7 consecutive weeks are 28 , 27,33,25,34,33 & 35 (in 1000's). a. Compute the three & four-week moving averages for this time series.

Answer 1

The three-week moving averages for the Wallace Company sales data are 29.33, 28.33, 30.67, 30.67, and 34.00, while the four-week moving averages are 28.25, 29.75, 31.25, and 31.75.

Step-by-step explanation:

The sales of Wallace Company for 7 consecutive weeks are 28, 27, 33, 25, 34, 33, and 35 (in 1000's). To compute the three-week and four-week moving averages for this time series, we need to take the average of each set of three or four consecutive weeks.

Three-Week Moving Averages:

1. (28 + 27 + 33) / 3 = 29.33 (Weeks 1-3)
2. (27 + 33 + 25) / 3 = 28.33 (Weeks 2-4)
3. (33 + 25 + 34) / 3 = 30.67 (Weeks 3-5)
4. (25 + 34 + 33) / 3 = 30.67 (Weeks 4-6)
5. (34 + 33 + 35) / 3 = 34.00 (Weeks 5-7)

Four-Week Moving Averages:

1. (28 + 27 + 33 + 25) / 4 = 28.25 (Weeks 1-4)
2. (27 + 33 + 25 + 34) / 4 = 29.75 (Weeks 2-5)
3. (33 + 25 + 34 + 33) / 4 = 31.25 (Weeks 3-6)
4. (25 + 34 + 33 + 35) / 4 = 31.75 (Weeks 4-7)