The 3-year moving averages for the loan (in lakh Rs.) issued by a finance company for startups in different cities of India based on the values given below will be:
| Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| Loan amount | 25 | 20 | 18 | 13 | 23 | 12 |
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 21, 17, 18, 16
A 3-year moving average is the mean of three consecutive years, placed against the middle year, moving one year forward each time:
\( \displaystyle 2020:\ \frac{25+20+18}{3}=\frac{63}{3}=21 \)
\( \displaystyle 2021:\ \frac{20+18+13}{3}=\frac{51}{3}=17 \)
\( \displaystyle 2022:\ \frac{18+13+23}{3}=\frac{54}{3}=18 \)
\( \displaystyle 2023:\ \frac{13+23+12}{3}=\frac{48}{3}=16 \)
In time order the moving averages are 21, 17, 18, 16.