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I’ve understood the workings, but could yu please explain how they forecasted the trend?
The average trend of the centred moving averages is (1,287·5 – 1,068·75)/5 = 43,750 units
Thank You
I will answer you, but you should have seen in the relevant chapter of our free Lecture Notes (in bold letters) that the examiner has said that she will no longer ask calculations on time series analysis.
She expects you to be aware what it is (it is revision of Paper F2), but she will not ask calculations (and therefore this question can no longer be asked).
The moving average has changed from 1068.75 to 1287.5 over a period of five quarters, and so the average change per quarter is got by dividing the change by 5.
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