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Time Series & Trend · Question 39 of 68

Question 39

MediumOriginal question

A town's water use, in lakh litres, over five years is 40, 46, 43, 52 and 55. What is the second 3-year moving average?

Options for question 39

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. The second 3-year moving average uses 46,43,5246, 43, 52.

  2. 46+43+523=47\frac{46 + 43 + 52}{3} = 47.

Worth noting

43 is the first 3-year average, of 40, 46 and 43; the second starts one year later.

Concept
A 3-year moving average
Typical time
90 s
Your time
—
The rule this testsTrend by moving averages
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