State Division of Motor Vehicles (DMV) Statistics Show the Rate

question 2

Essay

State Division of Motor Vehicles (DMV) statistics show the rate of new driver's license applications as shown below:
$\begin{array}{|l|c|c|}\hline \text { Month } & \text { Week } & \text { Applications } \\\hline \text { March } & 1 & 207 \\\hline & 2 & 211 \\\hline & 3 & 196 \\\hline & 4 & 206 \\\hline \text { Apri1 } & 1 & 238 \\\hline & 2 & 199 \\\hline & 3 & 215 \\\hline & 4 & 212 \\\hline\end{array}$
a.Using a three-week moving average, what is the forecast for the first week in April?
b.Using a four-week moving average, what is the forecast for the first week in April?

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Definitions:

Potential GDP

An estimate of the maximum level of economic activity that an economy can sustain over the long term without increasing inflation.

Labor Force

Comprises all the working-age population that is employed and those unemployed but seeking employment.

Rational Expectations

The economic theory that assumes individuals make predictions about the future based on all available information and in a way that is systematically correct.

Policy Makers

Individuals or groups responsible for making decisions and establishing regulations that guide the operation of governments and organizations.