Consider the following data:

Monthly Profit of a Gym
Month	Jan-12	Feb-12	Mar-12	Apr-12	May-12	Jun-12	Jul-12	Aug-12	Sep-12
Profit ($)	5,750
5,503
5,064
4,757
5,200
5,678
6,619
6,195
5,925
Step 1 of 5 :  Determine the three-period moving average for the next time period. If necessary, round your answer to one decimal place.

To determine the three-period moving average for the next time period, we follow these steps:

1. **Identify the last three months of profit values:**  
   For this problem, the last three months are:
   - July-12: $6,619
   - August-12: $6,195
   - September-12: $5,925

2. **Calculate the average of these three months:**

\[
\text{Three-period Moving Average} = \frac{6619 + 6195 + 5925}{3}
\]

Let's calculate that:

\[
\text{Three-period Moving Average} = \frac{6619 + 6195 + 5925}{3} = \frac{18739}{3} = 6246.3
\]

So, the three-period moving average for the next time period is **$6,246.3**.

Would you like more details or have any other questions? Here are some related questions:

1. How would the three-period moving average change if profits increased consistently over time?
2. What is the benefit of using a moving average in analyzing business trends?
3. How does the choice of the number of periods affect the moving average calculation?
4. Can a moving average be used to predict future profits? If so, how?
5. How would you calculate a weighted moving average for the same data?

**Tip:** When calculating a moving average, increasing the number of periods generally smooths out the data more, but it also makes the moving average less responsive to recent changes.

Learn how to calculate the three-period moving average for gym profit data using specific monthly profit values. This problem involves statistical analysis and time series concepts, providing a practical application for understanding business trends.

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