Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

For predicting the straight line trend in the sales of cars (in thousands) on the basis of 5 consecutive years' data, the company makes use of a 3-year moving averages method. If the sales of the cars for respective years are 15, 24, 18, 33 and 42 respectively, then which of the following averages will not be computed?

Options:

19

25

32

31

Correct Answer:

32

Explanation:

The correct answer is Option (3) → 32

$\text{Given sales data (in thousands): }15,\ 24,\ 18,\ 33,\ 42.$

$\text{3-year moving averages:}$

$\text{1st average: }\frac{15+24+18}{3}=\frac{57}{3}=19.$

$\text{2nd average: }\frac{24+18+33}{3}=\frac{75}{3}=25.$

$\text{3rd average: }\frac{18+33+42}{3}=\frac{93}{3}=31.$

$\text{Thus, computed averages are: }19,\ 25,\ 31.$

$\text{The value }32\ \text{does not appear in the computed moving averages and hence will not be computed.}$