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    Moving average in Mega Stat

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    A woman got a job at a starting salary of $35,000 a year. If she received an 8% raise on each additional year, how much would her salary be at the beginning of the tenth year? Use future-value method [ŷ = C * (1 + r)t-1 ] where 'C' is the base value, "r" stands for rate of increase and 't' stands for time. Show your work.

    2. Each year the local country club sponsors a tennis tournament. Play starts with 128 participants. During each round, half of the players are eliminated. How many players remain after 5 rounds? At what round does the tournament can't be played anymore? Chart the decay rate.

    3. Twenty two years sales (in millions) data for a company is given below:
    Year Sales
    1 1
    2 2
    3 3
    4 4
    5 5
    6 4
    7 3
    8 2
    9 3
    10 4
    11 5
    12 6
    13 5
    14 4
    15 3
    16 4
    17 5
    18 6
    19 7
    20 6
    21 5
    22 4

    A) Develop 5-year moving average for this time series. [Use Megastat or MS Excel, TOOLS, DATA ANALYSIS, MOVING AVERAGE function to determine the moving average and to chart the series. Center the moving average series to the original series. Make sure that there are four values lost - two at the start and two at the end.].

    B) Plot the series in line chart using MS Excel. Show the trend line

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    Solution Summary

    The solution provides step by step method for the calculation of moving average in excel . Formula for the calculation and Interpretations of the results are also included.

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