Question

Listed below is the number of movie tickets sold at the Library Cinema-Complex, in thousands, for the period from 2004 to 2016. Compute a five-year weighted moving average using weights of 0.12, 0.11, 0.25, 0.14, and 0.38, respectively. Describe the trend in yield. (Round your answers to 3 decimal places.) 2004 8.8 2005 8.34 2006 7.71 2007 6.75 2008 7.38 2009 6.96 2010 6.81 2011 6.8 2012 5.82 2013 5.86 2014 5.74 2015 5.31 2016 5.25 Click here for the Excel Data File The weighted moving averages are:

Answer 1

The weighted moving average value for 2006 is (8.8*.12+8.34*.11+7.71*.25+6.75*.14+7.38*.38)=7.6503

We calculate the weighted moving average values by the formula (sale1*.12+sale2*.11+sale3*.25+sale4*.14+sale5*.38)

Then the weighted moving average value for 2007 is (8.34*.12+7.71*.11+6.75*.25+7.38*.14+6.96*.38)= 7.2144

The weighted moving average value for 2008 is 7.0749

The weighted moving average value for 2009 is 6.8992

The weighted moving average value for 2010 is  6.5173

The weighted moving average value for 2011 is 6.3259

The weighted moving average value for 2012 is  6.0218

The weighted moving average value for 2012 is  5.7426

The weighted moving average value for 2013 is   5.5164

We find that the weighted moving average values decrease with time . Hence the trend is decreasing over time.