Question 38
MediumOriginal questionA shop's sales are recorded every quarter, and they rise and fall in the same way each year. Which moving average best removes this seasonal pattern?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
A moving average removes a regular pattern when its period equals the pattern's length.
The pattern repeats every 4 quarters, so each 4-quarter average contains one of each quarter.
Worth noting
A 3-quarter average always leaves out one quarter, so the seasonal effect stays.
- Concept
- Choosing the period of a moving average
- Typical timeTypical
- 90 s
- Your timeYours
- —
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