Question

Listed below is the number of movie tickets sold at the Library Cinema-Complex, in thousands, for the period from 2004 to 2016. Compute a five-year weighted moving average using weights of 0.1, 0.1, 0.2, 0.3, and 0.3, respectively. Describe the trend in yield. (Round your answers to 3 decimal places.)

2004	8.61
2005	8.14
2006	7.67
2007	6.59
2008	7.37
2009	6.88
2010	6.71
2011	6.61
2012	5.58
2013	5.87
2014	5.94
2015	5.49
2016	5.43

The weighted moving averages are:

Answer 1

Solution:

We have to compute a five-year weighted moving average using weights of 0.1, 0.1, 0.2, 0.3, and 0.3, respectively and describe the trend in yield.

Thus we get:

Year	Sales	Calculations	Weighted Moving Averages
2004	8.61
2005	8.14
2006	7.67
2007	6.59
2008	7.37
2009	6.88	=0.1X8.61 + 0.1X8.14+ 0.2X7.67 + 0.3X6.59 + 0.3X7.37	7.397
2010	6.71	=0.1X8.14 + 0.1X7.67 + 0.2X6.59 + 0.3X7.37 + 0.3X6.88	7.174
2011	6.61	=0.1X7.67 + 0.1X6.59+ 0.2X7.37 + 0.3X6.88 + 0.3X6.71	6.977
2012	5.58	=0.1X6.59 + 0.1X7.37+ 0.2X6.88 + 0.3X6.71 + 0.3X6.61	6.768
2013	5.87	=0.1X7.37 + 0.1X6.88+ 0.2X6.71 + 0.3X6.61 + 0.3X5.58	6.424
2014	5.94	=0.1X6.88 + 0.1X6.71+ 0.2X6.61 + 0.3X5.58 + 0.3X5.87	6.116
2015	5.49	=0.1X6.71 + 0.1X6.61+ 0.2X5.58 + 0.3X5.87 + 0.3X5.94	5.991
2016	5.43	=0.1X6.61 + 0.1X5.58+ 0.2X5.87 + 0.3X5.94 + 0.3X5.49	5.822
2017		=0.1X5.58 + 0.1X5.87+ 0.2X5.94 + 0.3X5.43 + 0.3X5.43	5.609

There is downward trend in the number of movie tickets sold at the Library Cinema-Complex from 2004 to 2016.