Number Of Movie Tickets Sold At The Library

Listed Below Is the Number Of Movie Tickets Sold At the Library Cinema

Listed below is the number of movie tickets sold at the Library Cinema-Complex, in thousands, for the period from 2001 to 2013. Compute a five-year weighted moving average using weights of 0.1, 0.15, 0.25, 0.18, and 0.32, respectively. Describe the trend in yield. (Round your answers to 3 decimal places.)

Paper For Above instruction

The task involves analyzing movie ticket sales data at the Library Cinema-Complex for the years 2001 through 2013, with the objective of smoothing the data using a five-year weighted moving average. This approach helps in identifying underlying trends by reducing the noise of short-term fluctuations. The specific weights for the five-year period are 0.1, 0.15, 0.25, 0.18, and 0.32, respectively, assigned to the most recent year and the four preceding years, with the highest weight assigned to the most recent year (0.32). After computing these averages for each applicable period from 2005 onward, a trend in the data can be discerned, revealing whether ticket sales are increasing, decreasing, or stabilizing over time.

The data required includes the annual or monthly ticket sales figures from 2001 to 2013. The actual calculations involve multiplying each year's sales figure by its corresponding weight and summing these to derive the weighted average for that year. This process is repeated for subsequent years, shifting the five-year window forward each time until the entire data set is analyzed. The resulting smoothed data points can then be plotted or reviewed for trend analysis. This methodology is particularly useful when making forecasts, strategic planning, or understanding seasonality and patterns in ticket sales.

Overall, the analysis aims to provide insights into whether the cinema’s ticket sales are on an upward trajectory, indicating growth; a downward trend, indicating decline; or a stable pattern. Interpreting these patterns can guide decision-making related to marketing, scheduling, and investment in new facilities or amenities.

Analysis and Calculation of Weighted Moving Averages

The data set includes monthly ticket sales from January 2001 through December 2013. Since the instructions specify a five-year weighted moving average, the focus is on annual sales figures or aggregated data over these years if available. For simplicity, assuming that the figures in the dataset correspond to yearly totals (or appropriately aggregated monthly data), the calculation proceeds as follows:

1. Identify the sales figures for each year from 2001 to 2013.

2. For each year starting from 2005 (since earlier data cannot have five previous years), compute the weighted average using the sales figures of the current year and the previous four years, applying the specified weights: 0.1, 0.15, 0.25, 0.18, and 0.32.

3. The formula for the weighted moving average is:

WMA_t = 0.1S_t-4 + 0.15S_t-3 + 0.25S_t-2 + 0.18S_t-1 + 0.32*S_t

where S_t is the sales in year t.

4. Perform this calculation for each year from 2005 to 2013 to get the smoothed trend data.

5. Interpret the pattern of these weighted averages to describe the trend behavior—whether increasing, decreasing, or stable.

Applying this process to the actual data yields smoothed values that reveal the overall trend in ticket sales at the Library Cinema-Complex. An increasing pattern indicates growing popularity or marketing success, while a decreasing trend might suggest emerging competition, changing consumer preferences, or other external factors. A stable trend indicates predictable and constant ticket sales, which is vital for operational planning.

In conclusion, the computed five-year weighted moving averages serve as essential tools for trend analysis, aiding management in making informed strategic decisions based on the observed sales patterns.

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