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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.

Published byYahir Brockbank Modified over 10 years ago

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Presentation on theme: "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."— Presentation transcript:

1 Moving Averages OCR Stage 8

2 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.

3 Year199619971998 Quarter123412341234 Sales 189244365262190266359250201259401265 265.25 270.75 269.25 4 Period Moving Average

4 Year199619971998 Quarter123412341234 Sales 189244365262190266359250201259401265 4 period Moving Average Quarters1-42-53-64-75-86-97-108-119-12 Moving Average 265265.25270.75269.25266.25269267.25277.75281.5

5 Year199619971998 Quarter123412341234 Sales 189244365262190266359250201259401265 1 23 4 1 23 4 1 23 4 100 200 300 400 500 x 1996 1997 1998 x x x x x x x x x x x Quarters1-42-53-64-75-86-97-108-119-12 Moving Average 265265.25270.75269.25266.25269267.25277.75281.5 x xx x xx x x x

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