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 112
In which year the quarterly compound average growth rate (CAGR) is the second lowest?
Solution
Compound Average Growth Rate= $$[\frac{End value}{Startvalue}]^{1/n}-1$$
1998 growth rate = $$[\frac{61}{65}]^{1/4}-1$$= -1.57%
1999 growth rate = $$[\frac{67}{68}]^{1/4}-1$$ = -0.36%
2000 growth rate = $$[\frac{52}{70}]^{1/4}-1$$ = -7.4%
2001 growth rate = $$[\frac{58}{60}]^{1/4}-1$$ = -0.84%
1998 is the year with second lowest quarterly CAGR.
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