Calculate moving average, Calculate Moving Average The table given below represents, Mathematics

Calculate moving average, Mathematics

Assignment Help:

Calculate Moving Average

The table given below represents company sales; calculate 3 and 6 monthly moving averages, for data

Months	Sales
January	1200
February	1280
March	1310
April	1270
May	1190
June	1290
July	1410
August	1360
September	1430
October	1280
November	1410
December	1390

Solution

These are calculated as given below:

April's forecast = (Jan + Feb + Mar)/3 = (1200 + 1280 + 1310)/3

May's forecast = (Feb + Mar + Apr )/3 = (1280 + 1310 + 1270)/3

And so on...

Similarly for 6 monthly moving average

July forecast = (Jan + Feb + Mar + Apr + Jun)/6

= (1200 + 1280 + 1310 + 1270 + 1190 + 1290)/6

And so on...

	3 months moving average	6 months moving average
April	1263
May	1287
June	1257
July	1250	1257
August	1297	1292
September	1353	1305
October	1400	1325
November	1357	1327
December	1373	1363

Note:

While plotting moving average on graphs the points are plotted as the midpoint of the period of the average, for illustration in our example the forecast for April (1263) is plotted on mid Feb.

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