Practice Types Of Moving Averages (11.3.2) - Index Numbers and Moving Averages

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6 sample questions

Question 1.
Calculate the 2-day simple moving average for the data points [5, 10, 15].
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Add the first two numbers and divide by 2.
Question 2.
What is the purpose of a moving average?
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Think about what happens when you average a temperature over several days.
3Question 3.
What does SMA stand for?
- Simple Moving Average
- Standard Mean Average
- Simple Median Average
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Focus on the term 'Simple'.
4Question 4.
True or False: The Weighted Moving Average gives all data points equal importance.
- True
- False
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Remember what we discussed about weighting.
Question 5.
Given the data points [15, 20, 25, 30, 35] and weights [1, 2, 3, 4, 5], calculate the WMA and explain its significance.
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Make sure to multiply properly and find the significance in terms of trends.
Question 6.
Discuss how moving averages can aid in economic forecasting and give an example related to inflation.
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Consider how inflation numbers can fluctuate and need smoothing.

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