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CMA Foundation · Fundamentals of Business Mathematics and Statistics · Index Numbers and Time Series

Sales (in ₹ lakh) of a Pune firm for five consecutive years are 12, 15, 18, 21 and 24. What is the 3-yearly moving average value placed against the middle year (the 3rd year)?

The 3-yearly moving average for the 3rd year is 18 lakh. It is found by averaging the 2nd, 3rd and 4th years: (15+18+21)/3 = 18. The average is placed against the middle year of the three values.

  1. A18Correct
  2. B15
  3. C21
  4. D19.5

Explanation

The 3-yearly moving average centred on the 3rd year uses years 2, 3 and 4: (15+18+21)/3 = 54/3 = 18. Option 15 is the average of years 1-3 (placed at year 2), so it belongs to a different year. Option 21 is the average of years 3-5, placed at year 4.

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