Question
Hudson Marine provides boats sales, service, and maintenance. Boat trailers are one of its top sales items. Suppose the quarterly sales values for the seven
Hudson Marine provides boats sales, service, and maintenance. Boat trailers are one of its top sales items. Suppose the quarterly sales values for the seven years of historical data are as follows. Do not round intermediate calculations.
Year | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total Yearly Sales | |||||
1 | 8 | 14 | 12 | 5 | 39 | |||||
2 | 8 | 16 | 17 | 7 | 48 | |||||
3 | 13 | 28 | 24 | 12 | 77 | |||||
4 | 17 | 29 | 24 | 20 | 90 | |||||
5 | 23 | 33 | 27 | 20 | 103 | |||||
6 | 24 | 37 | 29 | 22 | 112 | |||||
7 | 26 | 39 | 34 | 26 | 125 |
a. Compute the centered moving average values (first find Four-Quarter Moving Average) for this time series (to 3 decimals).
t | Sales | Centered Moving Average | ||
1 | 8 | |||
2 | 14 | |||
3 | 12 | |||
4 | 5 | |||
5 | 8 | |||
6 | 16 | |||
7 | 17 | |||
8 | 7 | |||
9 | 13 | |||
10 | 28 | |||
11 | 24 | |||
12 | 12 | |||
13 | 17 | |||
14 | 29 | |||
15 | 24 | |||
16 | 20 | |||
17 | 23 | |||
18 | 33 | |||
19 | 27 | |||
20 | 20 | |||
21 | 24 | |||
22 | 37 | |||
23 | 29 | |||
24 | 22 | |||
25 | 26 | |||
26 | 39 | |||
27 | 34 | |||
28 | 26 |
b. Choose a time series plot that also shows the centered moving average and original time series on the same graph. Discuss the differences between the original time series plot and the centered moving average time series.
- Select your answer -Time series plot 1Time series plot 2Time series plot 3Time series plot 4Item 25
The centered moving average values - Select your answer -smooth out the time series by removing seasonal effects smooth out the time series by removing some of the random valuessmooth out the time series by removing the trend linedoesn't smoothItem 26 .
c. Compute the seasonal indexes for the four quarters (to 3 decimals).
Quarter | Adjusted Seasonal Index |
1 | |
2 | |
3 | |
4 |
d. When does Hudson Marine experience the largest seasonal effect?
Hudson Marine experiences the largest seasonal increase in quarter . The largest seasonal effect is the seasonal decrease in quarter .
Does this result seem reasonable?
This - Select your answer -is also reasonable because of decreased boating in the fall and winteris also reasonable because of decreased boating in the summer and winteris also reasonable because of decreased boating in the summer and fallis not reasonableItem 33 .
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