4 point moving averages and centred moving averages

phunkyphantom22

My brain is really failing me today - oh dear! :001_unsure:

I am doing a Unit 7 simulation practice paper and there is a question asking me to calculate the sales trend over the last 3 years using moving averages.

I am given 3 years worth of sales figures, each split into the 4 quarters. My study book only details 3 point moving averages, but luckily I have already studied 4 point moving averages at Tech level - I just want to clarify that what I am doing is correct.

The template I am given shows the sales figures in one column, then a column for '4 period moving average' and a final column for 'centred moving average'.

So what I am doing is taking the total of year 1 (all 4 quarters) and dividing by 4 - this average goes between yr 1 Q2 and Q3, I then continue to make this calculation but moving down this column i.e the next calculation is year 1 Q1, Q2 and Q3 plus yr 2 Q1 dividied by 4 and this goes between yr 1 Q3 and Q4 etc.

Then in the 'centred moving average column', I total the 2 averages and divide by 2 and put the figure against yr 1 Q3 and carry on down the column like this.

Does this sound right?

SandyHood

Your technique is fine.

phunkyphantom22

Great - thanks Sandy! :-)