Question

) Answer the following questions regarding time series:

If the exports ($ millions) for the period 1997 through 2001 were $878, $892, $864, $870, and $912 respectively, what are these values called?

A time series is a collection of data that:

For an annual time series extending from 1993 through 2001, how many years would be lost in a five-year moving average?

For a three-year moving average, how many values will be lost at the beginning and end of the time series?

How can you describe the moving average method?

Answer 1

As these values are arranged with respect to time, it's a chronological data or a Time series.

A time series is a collection of data that: is arranged in chronological order i.e. data arranged according to its occurrence with respect to time.

In a five year moving average, we start by averaging the first 5 data values and place it against the year in the middle of this time interval i.e. the 3rd year. We then take the average of 5 years starting from the second year(from year 2 to year 6) and place this value against the 4th year and so on. Thus, proceeding in the same manner, we don't have any averaged value for the first 2 and last 2 years. i.e. for 1993,1992,2000,2001. Therefore, 4 years would me lost.

Similarly, in a 3 year moving average, we average first 3 values and place this value against the 2nd year and go on. Thus the value for the first year and last year would be lost.

(Note: b/w - between)