1) 4 year Exponential Moving Average | year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Sales | 20 | 21 | 23 | 22 | 25 | 24 | 27 | 26 | 28 | 30 |
Calculate 4 year Exponential Moving Average
Solution:
`alpha=2/(n+1)=2/(4+1)=0.4`
(1)
year | (2)
Sales | (3)
Exponential Smoothing
`(alpha=0.4)` |
| 1 | 20 | 20 |
| 2 | 21 | `0.4*20+0.6*20=20` |
| 3 | 23 | `0.4*21+0.6*20=20.4` |
| 4 | 22 | `0.4*23+0.6*20.4=21.44` |
| 5 | 25 | `0.4*22+0.6*21.44=21.664` |
| 6 | 24 | `0.4*25+0.6*21.664=22.9984` |
| 7 | 27 | `0.4*24+0.6*22.9984=23.399` |
| 8 | 26 | `0.4*27+0.6*23.399=24.8394` |
| 9 | 28 | `0.4*26+0.6*24.8394=25.3037` |
| 10 | 30 | `0.4*28+0.6*25.3037=26.3822` |
| 11 | | `0.4*30+0.6*26.3822=27.8293` |
This material is intended as a summary. Use your textbook for detail explanation.
Any bug, improvement, feedback then
