7. Given below are data on the monthly demand for a product.

a. Compute the 3-month moving average of this demand. Does this series still show seasonal variation?

b. Compute the 12-month moving average of this demand. Does this series of aver- ages still show seasonal variation?

c. Plot the original data and the two moving averages, centered between the periods they represent.

Transcribed Image Text:

MONTH DEMAND MONTH DEMAND MONTH DEMAND 11 123456TBADU2 487 13 528 25 517 602 14 622 26 595 551 15 608 27 619 587 16 592 28. 602 509 17 536 29 545 457 18 504 30 486 7 349 19 461 31 431 8 386 20 391 32 416 9 490 21 437 33 444 10 507 22 503 34 492 516 23 562 35 538 573 24 570 36 575