Question

In the moving average forecasting method, if you are using the last four observations, and the oldest of those observations was in 1945, what is the time span covered by this moving average?

a) 1 year
b) 2 years
c) 3 years
d) 4 years

Answer 1

The moving average forecasting method with the last four observations from 1945 covers a time span of four years, from 1945 to 1948.

Step-by-step explanation:

The moving average forecasting method using the last four observations covers a timespan that includes the four most recent data points. If the oldest observation used in the moving average is from 1945, the moving average would include that year and the three subsequent years. Therefore, the timespan covered would be from 1945 to 1948, which is a total of four years. Hence, the correct answer for the time span covered by this moving average is d) 4 years.