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Question 22 of 41
Q.

Find the trend using four monthly moving averages for the following data showing monthly sales (in lakhs ₹) of a shop.

MonthSales (lakh ₹)
March5
April3
May7
June6
July4
August8
September9
October10
November8
December9
Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2022Subjective· 5mImportance★★★★★
54% · 22/41 Questions
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4-month totals: 21,20,25,27,31,35,36; centred trend =two consecutive totals8=\dfrac{\text{two consecutive totals}}{8} → May 5.125, Jun 5.625, Jul 6.5, Aug 7.25, Sep 8.25, Oct 8.875.

Data (monthly sales, lakh ₹): Mar 5, Apr 3, May 7, Jun 6, Jul 4, Aug 8, Sep 9, Oct 10, Nov 8, Dec 9.

Step 1 — 4-monthly moving totals.

Months4-month total
Mar–Jun5+3+7+6 = 21
Apr–Jul3+7+6+4 = 20
May–Aug7+6+4+8 = 25
Jun–Sep6+4+8+9 = 27
Jul–Oct4+8+9+10 = 31
Aug–Nov8+9+10+8 = 35
Sep–Dec9+10+8+9 = 36

Step 2 — centre the totals (average of two consecutive 4-month totals, divided by 4 — equivalently sum ÷8\div 8), which aligns the trend with an actual month.

MonthCentred trend =sum of two consecutive totals8=\dfrac{\text{sum of two consecutive totals}}{8}
May(21+20)/8=41/8=5.125(21+20)/8 = 41/8 = 5.125
June(20+25)/8=45/8=5.625(20+25)/8 = 45/8 = 5.625

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