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					Moving Averages

   OCR Stage 8
           Why use them?
• Moving Averages, when graphed, allow us
  to see any trends in data that are cyclical
• By calculating the average of 2 or more
  items in the data, any peaks and troughs
  are smoothed out.
Year             1996                    1997              1998
  Quarter   1   2      3     4    1      2     3   4   1   2   3   4
   Sales    189 244 365 262 190 266 359 250 201 259 401 265

                 265
                    265.25            269.25

                             270.75




                       4 Period Moving Average
Year                1996                      1997                    1998
  Quarter     1     2     3         4    1    2     3     4    1      2      3    4
   Sales     189 244 365 262 190 266 359 250 201 259 401 265



                         4 period Moving Average

Quarters    1-4    2-5        3-6       4-7   5-8       6-9    7-10       8-11   9-12
Moving
Average     265   265.25 270.75 269.25 266.25           269   267.25 277.75 281.5
   Year
 Quarters       1-4   1996 3-6
                      2-5          4-7    1997 6-9
                                           5-8       7-10 1998
                                                            8-11  9-12
  Quarter
 Moving           1   2   3    4    1    2     3 4   1    2    3   4
 Average        265 265.25 270.75 269.25 266.25 269 267.25 277.75 281.5
   Sales         189 244 365 262 190 266 359 250 201 259 401 265




500

400                                                                                  x
                            x                          x
300                                                                              x
                        x       x   x x       x x x        x             x
                   x                                           x x           x           x
200         x                             x                          x

100


            1      2        3       4     1     2      3       4     1       2     3     4
                       1996                         1997                      1998

				
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posted:10/27/2011
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