CMA Final · Strategic Cost Management · Business Forecasting Models - Time Series and Regression Analysis
A Pune firm uses a 3-period centred moving average to smooth quarterly sales (in units): Q1 120, Q2 150, Q3 135, Q4 165, Q5 180. What is the moving average value centred on Q4?
The centred 3-period moving average for Q4 is 160, found by averaging Q3, Q4 and Q5 sales: (135+165+180)/3. Using Q2 to Q4 would centre the figure on Q3 and give 150, which is the wrong period.
- A150
- B160Correct
- C165
- D140
Explanation
The 3-period average centred on Q4 uses Q3, Q4 and Q5: (135+165+180)/3 = 480/3 = 160. The value 150 is the average of Q2, Q3, Q4 (centred on Q3), which is the wrong window.
Did you get it right without looking?
One question tells you little. A timed set on Business Forecasting Models - Time Series and Regression Analysis shows your real accuracy, how long you take and where you lose marks.
More Business Forecasting Models - Time Series and Regression Analysis questions
- A Pune firm uses a 3-period centred moving average to estimate trend. Monthly sales (Rs lakh) for Jan to May are 40, 46, 43, 52, 49. What is…
- A Jaipur firm finds that, for quarterly sales, the seasonal indices (average = 100) are Q1 90, Q2 110, Q3 120 and Q4 80. The deseasonalised …
- In a simple regression of cost on activity, the coefficient of correlation r is −0.8. What is the coefficient of determination, and what doe…
- Exponential smoothing with alpha = 0.4 is used by a Chennai retailer. The forecast for May was 500 units and actual May sales were 560 units…
- A firm uses exponential smoothing with alpha = 0.3. The forecast for March was 200 units and actual March demand was 240 units. What is the …
- A regression of monthly electricity cost Y (₹ thousand) on machine hours X (thousand) for a plant gives: n = 5, ΣX = 15, ΣY = 40, ΣXY = 130,…