BS-2 UNIT-3 full explanation| Degree 4th sem business statistics-2 unit-3 moving averages method💯

Added: 2026-05-19

[00:00:00]Hello dear students, welcome back to our YouTube channel Learn with Sahira. In this video, first let us talk about unit number three of business statistics 2 subject which is for degree fourth semester BCOM students. Students in your unit number three of BS2, you are having two different methods. First method is moving averages method. Second method is least square method. If you're getting perfect with both these methods, definitely two well marks will be in your hands. So just focus on these two methods from unit number three. They might ask you uh a problem on moving averages method. They might ask you to calculate threeear moving average, fourear moving average, 5ear moving average or 7year moving average. Any one year moving average they will ask or else they might also ask you twoear moving average like three and five they might ask you like that they will be asking you a question and they might also ask you a question on least to square method you need to find least to square like you will be having trend line in this video mainly we are going to focus on moving averages method all these years we are going to complete in this video okay and in my next video I'm going to show you What is least square method? How to solve the problem of least square method everything. So mainly in this video we are going to focus on first method which is moving averages method. Okay. Here we have a question as you can see on the screen.

[00:01:28]This question I have taken from our textbook. Everyone will be finding if you have a textbooks or materials you will be finding this question. What is the question? Question is, calculate a 7-year moving average for the following data on the number of commercial and industrial failures in a country during 1987 to 2002. So mainly you have to focus on this number. They are asking you to calculate 7-year moving average.

[00:01:55]So we are going to focus on 7year moving average. Don't worry 3 year, four year and fifth year also I'm going to show.

[00:02:02]But first let us see this 7-year moving average. How to perform this or how to solve this problem. Guys, they have also given us the data. We are having years as well as we are having number of failures. I have drawn this table. You can see on the screen what this table consists of. Table consists of year.

[00:02:22]Whatever the year values or whatever the years they have given us in the question that years only I have noted down here.

[00:02:29]And whatever number of failures they have given us, I have noted down those number of failures. Here both these columns are from the question itself.

[00:02:38]Question two columns columns.

[00:02:43]It can be number of failures. It can be anything. Okay. But year will be same.

[00:02:47]This column will be same and this column they might give you anything. So whatever they are giving in the question that only we have noted down. Then we are having seven year moving total.

[00:02:57]Okay. MT is nothing but moving total.

[00:03:00]Then we are having 7-year moving average. Guys, above the table, I have written calculation of trend by 7-year moving average. In short, I have written MA, but you have to write it completely.

[00:03:11]Here also, moving total, moving average, you have to write it full form. Okay, not short form because I'm explaining you. I have just mentioned MT and MA.

[00:03:20]But you have to do it correctly fully.

[00:03:23]You have to write it. Now how to calculate this 7-year moving average or moving total? First we are having moving total. Then we are having moving average right? So first let us calculate this box. What you are going to do is it is seven year moving average. Right? So seven uh numbers you have to count.

[00:03:41]Okay. Seven 1 2 3 4 5 6 7. You seven right? 1 2 3 4 5 6 7. Now you add all these numbers. Okay. S numbers add what are the numbers? 23 + 26 + 28 + 32 + 20 + 12 + 12. Okay. How much we are getting? We are getting 153. Okay.

[00:04:08]Please note note down this number. What is the number? It is 153. Okay. 7 HA.

[00:04:14]And now from these seven numbers which one is the middlemost number you have to find. Seven middle number 32 which is year 1990 to the middle number corresponding space to corresponding to this middle number you have to write or mention 153. Okay am I clear? Sevenyear moving average is seven numbers count you need to do the total once you add whatever the number you are getting you have to write that number to the middlemost value middle is 32 that's the reason I have written 153 now just leave this okay 23 just next go to next numbers 1 2 3 4 5 6 7 just all Add all the numbers. 26 + 28 + 32 + 20 + 12 + 12 10. How much it is? It is 140. Right? 140. Middle number three.

[00:05:32]Yeah. Three. Middle number this one it is. So you have to write 140. Direct number. Next come to this number. 1 2 3 4 5 6 7 Okay, you just add all the numbers. 28 + 32 + 20 + 12 + 12 10 9 how much it is? It is 123. You have to note down 123 here. Like that you have to leave this number and you have to count and add all other seven numbers and middlemost value added value. Okay, like that only you have to add all the numbers. Okay, I'm not going to waste my time or I'm not going to make this video very long because I need to also explain 3 4 and 5. So for that reason I'm directly taking the values but you don't take it directly. You try to solve it and then get it. Okay. Then we are having 108. Then we are having 87 81 81 again 78 71 63. I hope you understood the concept. Okay. After that see 63 1 2 3 4 5 6 7 till here it is like 13 13 add we got 63 and we have written after that you will not have seven numbers.

[00:06:57]Seven numbers you need to add seven numbers but you don't have seven numbers. In that case just leave it like that. Seven numbers just leave it like that. Okay dash okay seven numbers now how to calculate this moving average guys how to calculate this moving average just take this number 153 divided by 7 you have to do okay yeah 7 year moving average is take this number moving total divide it by 7 whatever the value you are getting you have to write it here correspondingly empty. Okay, you are having empty. Take 153 divide it by 7. Whatever the value you are getting, you write it here. 21.86 57 86 like that. Do it for all. 140 divided by 7. How much it is? It is 20.

[00:07:59]Okay. Then take 123 divided by 7. How much it is? It is 17.57.

[00:08:07]like that. Do it for all the numbers.

[00:08:09]108 divided by 7 87 divided by 7. You have to do it in that way. Okay. To up 15 uh around 43 then it will be 12.43 11.57 11.57.

[00:08:30]Okay. Then we have 11.14 10.14 and 9 to okay that's all this is the only method what you are going to do when it is about moving average method it simple 7 year 7 year calculate okay this is the way to question you just need to do this moving total and moving average how you are doing already have explained so just wait a minute Guys, I will be showing you three, four as well as five. Okay guys, we have seen 7year moving average, right? Here we have a question to calculate threeear and fiveyear moving averages. Okay, same way first you need to write the heading about the table calculation of three year or five year moving averages. Then whatever they have given in the question two columns will be same. Years column and production production is in Kindles that's the reason it has been mentioned. Whatever they are giving you in the question okay that you need to mention it exactly years whatever the years they have mentioned production whatever the production they have mentioned. After that in 7-year moving average we have written 7year moving total then we have written 7year moving average. But here we are talking about three year and five year right? They have done this in same table. Okay. Like they have done three year as well as five year in the same table. But you can do it separately. If you do it in this way time will be not wasted. So you can do it in this way. So because we are doing for three and five we are mentioning threeear moving total, threeear moving average. After that five year moving total and five year moving average. Same previously for seven year we were counting seven numbers and we were count uh adding it right but now we need to count three numbers number one number two number three take 500 540 and 550 add three of them and whatever the answer you are getting you have to write that answer to the middlemost number okay once you add 500 540 and 550 the answer will be 1590 1,590 and what is the middlemost number from these three numbers? It is 540 which is lying on 207. So you need to write it 1590 here.

[00:10:59]Okay. After that leave this 500 first wa then come to this first second third take 540 550 53 add three of them.

[00:11:10]Whatever the answer you are getting you have to write it below this. Okay, like that only you have to add three three numbers and to the middlemost you have to enter or you have to write the total value of added numbers. After that threeear moving averages how you will be finding it? Very simple. Take whatever the added value you got and divide it by three. You will be getting whatever the answer it is and mention it or write it in this three-year moving average. Okay.

[00:11:39]What you need to do 1590.

[00:11:44]Okay. Divided by 3 you have to do what it is. It is 530. So we got 530 like that only. Second 1620 divided by 3 540.

[00:11:54]Like that you have to divide it by three. Same for five year moving average or moving total you need not to take three. Now okay for 7 year we were adding seven numbers. For 3 year we were adding three numbers. Now for five year you have to add five numbers. 1 2 3 4 5 add five numbers. Okay. Whatever the answer you are getting, you have to write that answer to the middle number.

[00:12:20]Okay. 1 2 3 4 5. Okay. Two.

[00:12:24]This will be the middlemost value.

[00:12:26]Right? To this middlemost value, you have to write whatever the total you got. Now leave this 500 come to this 540. 540 + 550 + 530 + 520 + 560. It will be 2,700 and where you will be writing that 2,700 to the middlemost value which is 530.

[00:12:45]Like that add 55i numbers and whatever the added value you got you have to write it to the middlemost value. Now how to find this five year moving average same whatever the added value you got divided by five you will be getting the answer. Okay.

[00:13:04]If you want to write you can but time directly answer 2640 2700 2760 whatever the answer you're getting you have to do it in that way. So this is about 3 year and 5 year. Now we have four year. Okay guys 4 year is four four year or four yearly moving average is little bit different. Okay. How it is different? Let me say you guys see whatever the question they have given you year and production in tons these two columns will be same as I said you these two columns will be same and after that moving total and moving average will also be same however you have done for 7 year 3 year and 5 years same you have to do it with four year as well okay same columns year question production question moving total found Take four numbers 506 620 1036 673 add three add four these numbers and whatever the middlemost number you are having you have to write that uh there okay but if you see here do we have any middlemost value here or middlemost number here middlemost number no you're not finding it right middlemost Number two, middlemost value.

[00:14:31]Guys, in this case, we are writing the answer here. Okay, we have just added 506 620 103 67 uh 6 673. Whatever the answer we are getting, we are writing it here on third number. But guys, normally don't get confused where to write this number because we are not having middle value. What you need to do is in your examination you will be having two numbers above two numbers below middle value nothing is there. So just leave some place at this particular point.

[00:15:05]Two numbers place you can write the answer. If you do it in this way how I'm showing you on the screen, it is also correct. But if you want to not get confused, if you don't want to uh create any mess, what you can do is In that case what you need to do.

[00:15:35]Okay. So like that. So same thing add four numbers and whatever the value you are getting we were adding or we were writing it in middle value. But for four numbers you don't have any middle value.

[00:15:46]So that's the reason I'm writing it here. Okay. Add 50 620.

[00:15:51]Okay. You will be getting 5 0 6. Okay.

[00:15:55]506 + 620 + 1036 + 673 how much you are getting? You're getting 2835. Right? Correct. 2835.

[00:16:08]After that just ignore this 506 and add other four numbers and whatever the thing you are getting below this only you have to write like that you have to add four four numbers and you have to write the answers as 2 year moving total. After that uh sorry four year moving total after that four year moving average how you need to find out this just take this number divide it by four whatever the answer you are getting divided by four whatever the answer you are getting you have to write it here in 4year moving averages same after that two extra columns has been given in this table what are two extra columns two point average total 4year moving average centered okay how you have to do this let me say you whatever four year moving average you got you just take two two okay take first two add them and write the answer here below okay then take these two okay 72925 and 74825 okay we are adding and we are writing the total Okay, not here like that you just add 22 and write the totals. After that this is how you will be finding this column. After that how to find this column? Just divide this number by two. You will be getting this answer. Okay. 1 4 38 divided by 2. How much it is? It is 719. like that you have to take this number and you have to divide it by two you will be getting the answer. So this is the complete explanation of your moving averages. In next video we are going to see least square method. Okay. If you want damn sure important question and answers notes you can message me on my Instagram. Don't get confused about four year. Okay you space show you can write it between or else you can just write it like this how I'm showing you on the screen. Yeah. All the very best.

[00:18:15]Bye-bye.