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Moving average

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Moving average

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 23, 2022 at 6:27 pm #669736
    reckless
    Member
    • Topics: 45
    • Replies: 112
    • ☆☆

    Sir in bpp text, there’s an example i came across 11.3

    Example: forecasting by rough approximation

    The sales in $’000 of swimwear by a large department store for each period of three months are as follows.

    Quarter 20X4. 20X5. 20X6. 20X7
    $000. $000. $000. $000
    First. 8. 20. 40
    Second. 30. 50. 62
    Third. 60 80. 92
    Fourth. 24. 20. 40

    Required

    Using an additive model, find centred moving avg trend

    And here sir they are first figuring out centred moving total of 4th quarter moving total though we are supposed to find avg of moving total and then find the centred moving avg, could you please explain me this, I just watched your lecture again on this topic but i have this confusion

    So i will show in short what they’re doing

    20X4 quarter we got 24 just of 4th quarter added with the rest quarters of 20X5 gives us total moving total 122, then they find centred moving total by adding 122 and 118 of 4th quarter of 20X5 which gives us 120 and then dividing 120 by 4 which they’ve shown as moving avg of 30

    So what I don’t get is moving average is of moving total and then we find 2nd moving avg

    And I’ve done it like this

    First i find the 4 quarter moving total which is 122 and divide it by 4 gives me 30.5 and then 118 by 4 is 29.5 so both moving avg i find the centred moving avg which results in same =30, could you please tell me which is correct also would we be asked in exam to present centred moving total as well?

    October 24, 2022 at 9:02 am #669793
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54704
    • ☆☆☆☆☆

    They are both correct and the exam will not specify how to arrive at the figure.

    October 24, 2022 at 12:13 pm #669821
    reckless
    Member
    • Topics: 45
    • Replies: 112
    • ☆☆

    Okay sir thankyou!

    October 24, 2022 at 4:48 pm #669867
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54704
    • ☆☆☆☆☆

    You are welcome.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Moving average’ is closed to new replies.

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