Moving Averages

Question 1

Moving Averages

Answer 1

A method to reduce irregularities and smooth out the dispersion caused by variations

Question 2

Three Point Moving Average

Answer 2

Step 1: calculate an average for the first three points of data

Step 2: continue to calculate three point moving averages and include on the table

You can then plot the 3pma on a graph vs. the actual figures

Question 3

Four Point Moving Average

Answer 3

Step 1: calculate the four point moving average

Sep 2: find the moving average trend

Gives an even smoother result than 3pma

Question 4

Seasonal Average

Answer 4

Step 1: find the difference between the moving average and the actual data and add it to the table of data

Step 2: calculate the average seasonal variations