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  • ASAL Business Worksheet 21.1

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    Dewald Alberts
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    Time series analysis and moving averages involve analyzing patterns in data over time to predict future trends. A firm would want to predict future sales trends to better plan production and staffing levels. Key terms defined include trend as a long-term pattern, seasonal fluctuations as regular changes that occur each year, cyclical fluctuations as ups and downs in the broader economy, and random fluctuations as unpredictable changes. The document provides a table to calculate quarterly and seasonal moving averages to analyze sales revenue trends over multiple years. Benefits of moving averages include smoothing out random fluctuations, while drawbacks include a delay in identifying turning points in trends.

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    Time series analysis and moving averages involve analyzing patterns in data over time to predict future trends. A firm would want to predict future sales trends to better plan production and staffing levels. Key terms defined include trend as a long-term pattern, seasonal fluctuations as regular changes that occur each year, cyclical fluctuations as ups and downs in the broader economy, and random fluctuations as unpredictable changes. The document provides a table to calculate quarterly and seasonal moving averages to analyze sales revenue trends over multiple years. Benefits of moving averages include smoothing out random fluctuations, while drawbacks include a delay in identifying turning points in trends.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    5 views2 pages

    ASAL Business Worksheet 21.1

    Uploaded by

    Dewald Alberts
    Time series analysis and moving averages involve analyzing patterns in data over time to predict future trends. A firm would want to predict future sales trends to better plan production and staffing levels. Key terms defined include trend as a long-term pattern, seasonal fluctuations as regular changes that occur each year, cyclical fluctuations as ups and downs in the broader economy, and random fluctuations as unpredictable changes. The document provides a table to calculate quarterly and seasonal moving averages to analyze sales revenue trends over multiple years. Benefits of moving averages include smoothing out random fluctuations, while drawbacks include a delay in identifying turning points in trends.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    CAMBRIDGE INTERNATIONAL AS & A LEVEL BUSINESS

    Topic worksheet 21.1


    Time series analysis and moving averages
    1 Explain what is meant by time series analysis and moving averages.
    _________________________________________________________________________________________
    _________________________________________________________________________________________
    _________________________________________________________________________________________
    _________________________________________________________________________________________
    _________________________________________________________________________________________
    2 Identify two reasons why a firm would want to predict future sales trends.

    a ______________________________________________________________________________________
    ______________________________________________________________________________________
    b ______________________________________________________________________________________
    ______________________________________________________________________________________
    3 Define the following key terms:
    a Trend

    ______________________________________________________________________________________
    ______________________________________________________________________________________
    b Seasonal fluctuations
    ______________________________________________________________________________________
    ______________________________________________________________________________________
    c Cyclical fluctuations
    ______________________________________________________________________________________
    ______________________________________________________________________________________
    d Random fluctuations
    ______________________________________________________________________________________
    ______________________________________________________________________________________

    Cambridge International AS & A Level Business – Chalk & Malpas © Cambridge University Press 2021
    1
    CAMBRIDGE INTERNATIONAL AS & A LEVEL BUSINESS

    4 Complete the table below:

    1 2 3 4 5 6 7 8

    Quarterly
    Seasonal Average
    Sales Four-quarter Eight-quarter moving
    Year Quarter moving seasonal
    revenue moving total moving total average
    variation variation
    (trend)

    2019 1 120

    2 110

    3 115

    4 130

    2020 1 112

    2 121

    3 133

    4 181

    2021 1 127

    2 145

    3 133

    4 138

    5 Calculate the average seasonal variation. Use this space to do your calculations.

    Use your coursebook to help you answer the following questions:

    6 Outline two benefits for a firm of using the moving-average method of forecasting.
    _________________________________________________________________________________________
    _________________________________________________________________________________________

    7 Outline two drawbacks for a firm of using the moving-average method of forecasting.
    _________________________________________________________________________________________
    _________________________________________________________________________________________

    Cambridge International AS & A Level Business – Chalk & Malpas © Cambridge University Press 2021
    2

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