Simple Moving Average Formula & 3 year Simple Moving Average Example

Formula

Examples
1) 3 year Simple Moving Average
year 1 2 3 4 5 6 7 8 9 10 11 12
Sales 5.2 4.9 5.5 4.9 5.2 5.7 5.4 5.8 5.9 6 5.2 4.8
Calculate 3 year Simple Moving Average

Solution:
The value of table for `x` and `y`

x	1	2	3	4	5	6	7	8	9	10	11	12
y	5.2	4.9	5.5	4.9	5.2	5.7	5.4	5.8	5.9	6	5.2	4.8

Calculation of 3 year moving averages of the data

(1) year	(2) Sales	(3) 3 year moving total	(4) 3 year moving average `(3)-:3`
1	5.2
2	4.9	`5.2+4.9+5.5=15.6`	`15.6-:3=5.2`
3	5.5	`4.9+5.5+4.9=15.3`	`15.3-:3=5.1`
4	4.9	`5.5+4.9+5.2=15.6`	`15.6-:3=5.2`
5	5.2	`4.9+5.2+5.7=15.8`	`15.8-:3=5.2667`
6	5.7	`5.2+5.7+5.4=16.3`	`16.3-:3=5.4333`
7	5.4	`5.7+5.4+5.8=16.9`	`16.9-:3=5.6333`
8	5.8	`5.4+5.8+5.9=17.1`	`17.1-:3=5.7`
9	5.9	`5.8+5.9+6=17.7`	`17.7-:3=5.9`
10	6	`5.9+6+5.2=17.1`	`17.1-:3=5.7`
11	5.2	`6+5.2+4.8=16`	`16-:3=5.3333`
12	4.8

2) 3 year Simple Moving Average
year 1 2 3 4 5 6 7 8 9 10
Sales 30 25 35 25 20 30 35 40 30 45
Calculate 3 year Simple Moving Average

Solution:
The value of table for `x` and `y`

x	1	2	3	4	5	6	7	8	9	10
y	30	25	35	25	20	30	35	40	30	45

Calculation of 3 year moving averages of the data

(1) year	(2) Sales	(3) 3 year moving total	(4) 3 year moving average `(3)-:3`
1	30
2	25	`30+25+35=90`	`90-:3=30`
3	35	`25+35+25=85`	`85-:3=28.3333`
4	25	`35+25+20=80`	`80-:3=26.6667`
5	20	`25+20+30=75`	`75-:3=25`
6	30	`20+30+35=85`	`85-:3=28.3333`
7	35	`30+35+40=105`	`105-:3=35`
8	40	`35+40+30=105`	`105-:3=35`
9	30	`40+30+45=115`	`115-:3=38.3333`
10	45

This material is intended as a summary. Use your textbook for detail explanation.
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1. Formula & 3 year Simple Moving Average Example