1.7

Hudson Marine has bewuthorized desert for Camarine radios for the past seven years. Suppose the quarterly sales values for the seven years of historical data are as follows: Year Total Yearly Sales Quarter 1 Quarter 3 Quarter 4 Quarter 1 1 4 11 6 2 10 19 16 9 544 3 16 22 23 14 21 26 26 16 5 20 23 27 20 100 6 25 14 110 2 30 402 30 13 a. Compute the centered moving average values for Quartet Moving Average for the time series to 3 decimal) Centered Moving Sales Average 4 13 3 11 1.500 1 4 6 5 10 0 10 7 16 e t s t e r s t 6 10 10 21 assignment t a. Compute the centered moving average values (Four Quarter Moving Average) for this time series (to 3 decimals). Centered Moving Sales Average 1 4 2 13 3 11 8.500 6 $ $ $ 5 10 6 19 T 16 8 9 D 16 10 27 11 23 12 14 13 21 14 28 26 16 16 17 20 IN 10 27 30 20 19 27 20 20 21 25 22 34 23 32 24 19 & 25 30 26 40 27 33 28 28 b. Choose a time series plot that also shows the centered moving average and originaltime series on the same graph Discuss the differences between the original time series plot and the centered moving average time series 1 Sales 35 30 20 15 10 5 10 15 20 25 Year Sales ICM/A 5 10 15 20 25 Year Sales ICMA Time series plot 3 The centered moving average values smooth out the time series by removing seasonal effects C. Compute the seasonal indexes for the four quarters (to 3 decimals) Quarter Adjusted Seasonal Index 1 2 3 3 d. When does Hudson Marine experience the largest seasonal effect? Midson Marine experiences the largest seasonal increase in quarter The largest seasonal effect is the seasonal decrease in quarter Does this result seem enable? This is also reasonable because of decreased boating in the fall and winter V 3 Sales -35 30 25 20 AAAAA 15+ 10 5 5 10 15 20 25 Year Sales CMA