Moving averages

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
Hi,<BR><BR>Could someone please advise me how to calculate what the expected sales would be when you are calculating a moving average? I know how to calculate the moving average but then this particular question asks what are the expected sales for week 18??<BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Moving averages

    I think u hve to calculate the increment and then add it to the last moving average.I'm not quite sure of the formula.I guess it has to do wiv forecasting.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Moving averages

    To calculate the forecast figures from the moving average take the last figure subtract the first figure then divide the total by the amount of numbers subtracting 1.<BR>more clearly:<BR><BR>105 - 99<BR>
    = 0.5 this would equal the increment for each of the consecutive months<BR> 13-1<BR><BR>for example the last months figure is 105 therefore you would take 105 + 0.5 = 105.5 1st month forecast<BR> 105.5 + 0.5 = 106 2nd month forecast<BR>and so on. <BR>I hope this is clear as explaining something on here is not so easy!

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