Instruction 14-8
the Number of Cases of Merlot Wine Sold

question 49

Essay

Instruction 14-8
The number of cases of merlot wine sold by a Barossa Valley Winery in an eight-year period follows.
$\begin{array}{cc}\text { Year } & \text { Cases of } \\& \text { Wine } \\2003 & 270 \\2004 & 356 \\2005 & 398 \\2006 & 456 \\2007 & 358 \\2008 & 500 \\2009 & 410 \\2010 & 376\end{array}$

-Referring to Instruction 14-8,construct a centred five-year moving average for the wine sales.

---

Definitions:

Credit Cards

Financial instruments issued by banks or financial institutions that allow cardholders to borrow funds with which to pay for goods and services with the obligation to pay back the borrowed money, plus any applicable interest.

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term income expectations rather than their current income.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as disposable income falls, unrelated to the level of interest rates.

Wealth Effect

The change in spending that accompanies a change in perceived wealth, typically when home values or investment portfolios increase.