Moving Averages
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If I have the following years 2001, 2002, 2003, 2004, 2005, 2006, 2007, and 2008 the annual profit for each year is 10, 4, 8, 18, 24, 34, 20, and 12. it is a 5 Year Moving Average so 64/5= 12.8
My question is how do you figure out which year to input the moving average to.
In the above example the answer for the first moving average went into 2003 (is this because the 12.8 is below 18 in 2004 and above 8 in 2003).
If the time period was 4 years were would the first moving average figure appear?
Any help please
My question is how do you figure out which year to input the moving average to.
In the above example the answer for the first moving average went into 2003 (is this because the 12.8 is below 18 in 2004 and above 8 in 2003).
If the time period was 4 years were would the first moving average figure appear?
Any help please
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Comments
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Re:Moving Averages
If you are taking an even number of points for the moving average then this average will fall between two years. You then need to calculate the centred moving average by taking the average of each pair, this will then be in line with the time period in question.
So, your first four point average would be 12.5 and fall between 2002 and 2003, the second would be 13.5 and fall between 2003 and 2004. The centred average will be 13 and will be entered against 2003.
Chris
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Re:Moving Averages
Cheers
Its so easy when someone shows you.
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