Instructions

Refer to the Table below. It provides quarterly output data of a company for four years (1998-2001) and its trend calculated through 4-quarter Moving Average Method:


Question 110

In which year and which quarter the output has second highest positive deviation from its trend?

Solution

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Quarters with positive deviations from its trend

1999 Quarter 1, deviation = Value - moving average = 68-62.88 = 5.12

1999 Quarter 4, deviation = 67-65.25 = 1.75 

2000 Quarter 1, deviation = 70-63.88 = 6.12

2001 Quarter 1, deviation = 60-55.12 = 4.88 

Clearly, 1999 Quarter 1 is second highest.

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