Characteristics and limitations of moving average, Mathematics

Characteristics and Limitations of moving average

Characteristics of moving average

1) The more the number of periods in the moving average, the greater the smoothing effect.

2) Various moving averages produce various forecasts.

3) The more the randomness of data along with underlying trend being constant then the more the periods should be included in the moving averages.

Limitations of moving averages

1) Equal weighing along with disregard to how more recent data is more relevant.

2) Moving average ignores data outside the period of the average hence it does not fully utilize available data.

3) Where there is an underlying seasonal variation, forecasting along with unadjusted moving average can be misleading.

Posted Date: 2/16/2013 7:34:50 AM | Location : United States







Related Discussions:- Characteristics and limitations of moving average, Assignment Help, Ask Question on Characteristics and limitations of moving average, Get Answer, Expert's Help, Characteristics and limitations of moving average Discussions

Write discussion on Characteristics and limitations of moving average
Your posts are moderated
Related Questions
What is our aim when teaching children multiplication? Firstly they should be able to judge which situations they need to multiply in, and the numbers that are to be multiplied sec

what is the tenths place


marianne took $100.00 to a store that was holding a no-tax sale. she bought a shirt for $24.99, sandals for $18.50, shorts for $16.49, and a beach bag for $21.69. how much did she

A right triangular prism has volume equal to 288 cm^3. The height of the prism is 3 cm. One of the bases of the triangular face (not the hypotenuse) is equal to 12 cm, determine th

Question: Let f be a quartic polynomial (ie. a polynomial of degree 4). Suppose that f has zeros at -2; 1; 3; 4 and that f(0) = 4. Sketch a graph of f. If f(x) is

Nine minus five times a number, x, is no less than 39. Which of the subsequent expressions represents all the possible values of the number? Translate the sentence, "Nine minus

the first question should be done using the website given (www.desmos.com/calculator )and another good example to explain using the graph ( https://www.desmos.com/calculator/ydimzr


Q. How to calculate Mode? The mode of a data set is the value that is repeated most often in the data set. It has the highest frequency. There can be one, more than one, or n