PRACTICAL No: 10

CALCULATING MOVING AVERAGES

1) Calculate 3 yearly moving averages for the following time series giving the gross
revenue data (Rs. in millions) for a travel agency for a 10-year period. Plot the given
data and moving averages on a graph paper.
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Gross 3 6 10 8 7 12 14 14 18 19
revenue

To calculate the 3-year moving averages and plot the given data and
moving averages on a graph in Excel, follow these steps:

1. Enter the data into Excel:

 Create two columns for the year and gross revenue.
 Enter the years in one column (let's say column A, starting from A2),
and the corresponding gross revenue values in another column (let's
say column B, starting from B2).
2. Calculate the 3-year moving averages:
 In a new column (let's say column C), starting from cell C4, calculate
the 3-year moving averages using the AVERAGE function.
 In cell C4, enter the formula =AVERAGE(B2:B4).
 Drag the fill handle down to apply the formula for the remaining
rows.
3. Plot the data and moving averages on a graph:
 Select the data range including years, gross revenue, and moving
averages.
 Go to the "Insert" tab on the Excel ribbon.
 In the "Charts" group, choose the type of chart you want to create
(e.g., Line Chart).
 Excel will create the graph based on the data provided.
4. Customize the chart:
 Double-click on the chart to open the "Format Chart Area" pane.
 You can adjust various chart elements such as titles, axis labels,
gridlines, etc., according to your preference.
5. Add chart title and axes titles:
  Click on the chart to select it.
 Go to the "Chart Design" tab on the Excel ribbon.
 In the "Chart Layouts" group, click on "Add Chart Element" and
choose "Chart Title" to add a title to the chart.
 Enter the desired title for the chart.
 Similarly, click on "Axis Titles" under "Add Chart Element" to add
titles for the x and y axes.
 Enter the desired titles for the x and y axes.

After completing these steps, you'll have a graph in Excel showing the
given data and the 3-year moving averages, with titles for the chart and
axes.
 2) Find five yearly moving averages for the following time series of a company. Plot the
given data and moving averages on a graph paper.
Year 1998 1999 2000 2001 2002 2003 2004 2005

No. of 35 38 42 45 42 41 50 48
Policyholders
in Thousands

To calculate the five yearly moving averages and plot the given data and
moving averages on a graph in Excel, follow these steps:

1. Enter the data into Excel:

 Create two columns for the year and number of policyholders.
 Enter the years in one column (let's say column A, starting from A2),
and the corresponding number of policyholders values in another
column (let's say column B, starting from B2).
2. Calculate the five yearly moving averages:
 In a new column (let's say column C), starting from cell C6, calculate
the five yearly moving averages using the AVERAGE function.
 In cell C6, enter the formula =AVERAGE(B2:B6).
 Drag the fill handle down to apply the formula for the remaining
rows.
3. Plot the data and moving averages on a graph:
 Select the data range including years, number of policyholders, and
moving averages.
 Go to the "Insert" tab on the Excel ribbon.
 In the "Charts" group, choose the type of chart you want to create
(e.g., Line Chart).
 Excel will create the graph based on the data provided.
4. Customize the chart:
 Double-click on the chart to open the "Format Chart Area" pane.
 You can adjust various chart elements such as titles, axis labels,
gridlines, etc., according to your preference.
5. Add chart title and axes titles:
 Click on the chart to select it.
 Go to the "Chart Design" tab on the Excel ribbon.
  In the "Chart Layouts" group, click on "Add Chart Element" and
choose "Chart Title" to add a title to the chart.
 Enter the desired title for the chart.
 Similarly, click on "Axis Titles" under "Add Chart Element" to add
titles for the x and y axes.
 Enter the desired titles for the x and y axes.

After completing these steps, you'll have a graph in Excel showing the
given data and the five yearly moving averages, with titles for the chart
and axes.
 3) Calculate 4 yearly moving averages for the following time series Plot the given data
and moving averages on a graph paper.
Year 1990 1991 1992 1993 1994 1995 1996 1997

No. of 12 35 54 70 87 100 84 70
Policyholders
in Thousands

To calculate the 4-year moving averages and plot the given data and
moving averages on a graph in Excel, follow these steps:

1. Enter the data into Excel:

 Create two columns for the year and number of policyholders.
 Enter the years in one column (let's say column A, starting from A2),
and the corresponding number of policyholders values in another
column (let's say column B, starting from B2).
2. Calculate the 4-year moving averages:
 In a new column (let's say column C), starting from cell C5, calculate
the 4-year moving averages using the AVERAGE function.
 In cell C5, enter the formula =AVERAGE(B2:B5).
 Drag the fill handle down to apply the formula for the remaining
rows.
3. Plot the data and moving averages on a graph:
 Select the data range including years, number of policyholders, and
moving averages.
 Go to the "Insert" tab on the Excel ribbon.
 In the "Charts" group, choose the type of chart you want to create
(e.g., Line Chart).
 Excel will create the graph based on the data provided.
4. Customize the chart:
 Double-click on the chart to open the "Format Chart Area" pane.
 You can adjust various chart elements such as titles, axis labels,
gridlines, etc., according to your preference.
5. Add chart title and axes titles:
 Click on the chart to select it.
 Go to the "Chart Design" tab on the Excel ribbon.
  In the "Chart Layouts" group, click on "Add Chart Element" and
choose "Chart Title" to add a title to the chart.
 Enter the desired title for the chart.
 Similarly, click on "Axis Titles" under "Add Chart Element" to add
titles for the x and y axes.
 Enter the desired titles for the x and y axes.

After completing these steps, you'll have a graph in Excel showing the
given data and the 4-year moving averages, with titles for the chart and
axes.
 4) Find trend values using 4 yearly centered moving average method.
Week 1 2 3 4 5 6 7 8

Production 90 88 85 92 90 88 92 94

(1000 kgs)

To find trend values using the 4-yearly centered moving average method
in Excel, follow these steps:

1. Enter the data into Excel:

 Create two columns for the week and production values.
 Enter the week numbers in one column (let's say column A, starting
from A2), and the corresponding production values in another
column (let's say column B, starting from B2).
2. Calculate the 4-yearly centered moving averages:
 In a new column (let's say column C), starting from cell C5, calculate
the 4-yearly centered moving averages.
 In cell C5, enter the formula =AVERAGE(B2:B5).
 Drag the fill handle down to apply the formula for the remaining
rows, ensuring to include the two preceding and two succeeding
values for each row.
3. Calculate the trend values:
 In a new column (let's say column D), starting from cell D5, calculate
the trend values by taking the difference between the production
value and the corresponding 4-yearly centered moving average.
 In cell D5, enter the formula =B5-C5.
 Drag the fill handle down to apply the formula for the remaining
rows.
4. Plot the trend values on a graph:
 Select the data range including weeks and trend values.
 Go to the "Insert" tab on the Excel ribbon.
 In the "Charts" group, choose the type of chart you want to create
(e.g., Line Chart).
 Excel will create the graph based on the data provided.
5. Customize the chart:
 Double-click on the chart to open the "Format Chart Area" pane.
  You can adjust various chart elements such as titles, axis labels,
gridlines, etc., according to your preference.
6. Add chart title and axes titles:
 Click on the chart to select it.
 Go to the "Chart Design" tab on the Excel ribbon.
 In the "Chart Layouts" group, click on "Add Chart Element" and
choose "Chart Title" to add a title to the chart.
 Enter the desired title for the chart.
 Similarly, click on "Axis Titles" under "Add Chart Element" to add
titles for the x and y axes.
 Enter the desired titles for the x and y axes.

After completing these steps, you'll have a graph in Excel showing the
trend values calculated using the 4-yearly centered moving average
method, with titles for the chart and axes.