Characteristics and limitations of moving average, Mathematics

Assignment Help:

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.


Related Discussions:- Characteristics and limitations of moving average

Marketing research, project assignment of page no.19 question no.2

project assignment of page no.19 question no.2

Develop a linear algebraic equation, Introduction: "Mathematical liter...

Introduction: "Mathematical literacy is an individual's capacity to identify and understand the role that mathematics plays in the world, to make well-founded judgments, and t

Trig, what is the domain of the function f(x)= 2x^2/x^2-9

what is the domain of the function f(x)= 2x^2/x^2-9

Integration of sin ³a.cos ³a , writing sin 3 a.cos 3 a = sin 3 a.cos 2 a.co...

writing sin 3 a.cos 3 a = sin 3 a.cos 2 a.cosa = sin 3 a.(1-sin 2 a).cosa put sin a as then cos a da = dt integral(t 3 (1-t 2 ).dt = integral of t 3 - t 5 dt = t 4 /4-t 6 /6

Dora, dora and her family are driving to visit relatives for the holidays t...

dora and her family are driving to visit relatives for the holidays they travel 174 miles in 3 hours if they travel at a constant speed how many miles do they travel in one hourest

Discovery, i have discovered a formula for finding the radius at any point ...

i have discovered a formula for finding the radius at any point of the graph have i done a good job

Describe the sample of exponents , Describe the Sample of Exponents ? I...

Describe the Sample of Exponents ? Imagine, for example, that you are the P.E. coach at your school, and you need to divide one of your classes into teams. Your team has 45 stu

Estimate the last month sales increased through only 1/2%, Sales increased ...

Sales increased through only 1/2% last month. If the sales from the previous month were $152,850, what were last month's sales? Multiply through the decimal equivalent of 1/2 %

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd