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3. Exponential Moving Average example ( Enter your problem )
  1. Formula & 3 year Exponential Moving Average Example
  2. 4 year Exponential Moving Average Example
  3. 5 year Exponential Moving Average Example
Other related methods
  1. Simple Moving Average
  2. Weighted Moving Average
  3. Exponential Moving Average
  4. Single Exponential Smoothing
  5. Simple Moving Average forecast
  6. Weighted Moving Average forecast
  7. Exponential Moving Average forecast
  8. Single Exponential Smoothing forecast

2. Weighted Moving Average
(Previous method)
2. 4 year Exponential Moving Average Example
(Next example)

1. Formula & 3 year Exponential Moving Average Example





Formula
Examples
1) 3 year Exponential Moving Average
year123456789101112
Sales5.24.95.54.95.25.75.45.85.965.24.8
Calculate 3 year Exponential Moving Average


Solution:
alpha=2/(n+1)=2/(3+1)=0.5

(1)
year
(2)
Sales
(3)
Exponential Smoothing
(alpha=0.5)
15.25.2
24.90.5*5.2+0.5*5.2=5.2
35.50.5*4.9+0.5*5.2=5.05
44.90.5*5.5+0.5*5.05=5.275
55.20.5*4.9+0.5*5.275=5.0875
65.70.5*5.2+0.5*5.0875=5.1438
75.40.5*5.7+0.5*5.1438=5.4219
85.80.5*5.4+0.5*5.4219=5.4109
95.90.5*5.8+0.5*5.4109=5.6055
1060.5*5.9+0.5*5.6055=5.7527
115.20.5*6+0.5*5.7527=5.8764
124.80.5*5.2+0.5*5.8764=5.5382
130.5*4.8+0.5*5.5382=5.1691



2) 3 year Exponential Moving Average
year12345678910
Sales30253525203035403045
Calculate 3 year Exponential Moving Average


Solution:
alpha=2/(n+1)=2/(3+1)=0.5

(1)
year
(2)
Sales
(3)
Exponential Smoothing
(alpha=0.5)
13030
2250.5*30+0.5*30=30
3350.5*25+0.5*30=27.5
4250.5*35+0.5*27.5=31.25
5200.5*25+0.5*31.25=28.125
6300.5*20+0.5*28.125=24.0625
7350.5*30+0.5*24.0625=27.0312
8400.5*35+0.5*27.0312=31.0156
9300.5*40+0.5*31.0156=35.5078
10450.5*30+0.5*35.5078=32.7539
110.5*45+0.5*32.7539=38.877



This material is intended as a summary. Use your textbook for detail explanation.
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2. Weighted Moving Average
(Previous method)
2. 4 year Exponential Moving Average Example
(Next example)





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