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
1. In an in finite horizon capital/consumption model, if kt and ct are the capital stock and consumption at time t, we have f(kt) = ct+kt+1 for t ≥ 0 where f is a given production

Describe some Example of substitution method of Linear Equations with solution.

Which of the following sets are equal? S 1 = {1, 2, 2, 3}, S 2 = {x | x 2 - 2x + 1 = 0}, S 3 = {1, 2, 3}, S 4 = {x | x 3 - 6x

how do I change this ratio to a fraction


f(x)=4x-3 and g(x)=(x+3)/4 a)Find the function fg(x) b)Hence describe the relationship between the functions f and g c)Write down the exact value of fg(sqrt(3))

Celine deposited $505 into her savings account. If the interest rate of the account is 5% per year, how much interest will she have made after 4 years? Use the formula F = 9/5

create a system of linear equations that has (2,3)as a solution.


y=x4/4lnx-x4/16 then dy/dx=? Solution) dy/dx=-x^3/4(2/lnx-1)^2.    ^ means power