Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Can you assist me with problem 19. Please show the process in order to make it easier to follow along. Thank you

Transcribed Image Text:The task is to calculate the three-year moving averages for years 4 through 10 using the given data:
| Year | Demand |
|------|--------|
| 1 | 74 |
| 2 | 90 |
| 3 | 59 |
| 4 | 91 |
| 5 | 140 |
| 6 | 98 |
| 7 | 110 |
| 8 | 123 |
| 9 | 99 |
**Explanation for Calculation:**
To find a three-year moving average, we calculate the average demand for each overlapping set of three consecutive years.
**Example Calculation:**
- **Year 4 Moving Average:**
- Calculate the average of demands for years 1, 2, and 3.
- \( (74 + 90 + 59) / 3 = 74.33 \)
- **Year 5 Moving Average:**
- Calculate the average of demands for years 2, 3, and 4.
- \( (90 + 59 + 91) / 3 = 80.00 \)
Continue in this manner for subsequent years up to Year 9 for a complete series of moving averages.
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