1) 5 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 5 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 5 year moving averages of the data
(1)
year | (2)
Sales | (3)
5 year moving total | (4)
5 year moving average
`(3)-:5` |
| 1 | 5.2 | | |
| 2 | 4.9 | | |
| 3 | 5.5 | `5.2+4.9+5.5+4.9+5.2=25.7` | `25.7-:5=5.14` |
| 4 | 4.9 | `4.9+5.5+4.9+5.2+5.7=26.2` | `26.2-:5=5.24` |
| 5 | 5.2 | `5.5+4.9+5.2+5.7+5.4=26.7` | `26.7-:5=5.34` |
| 6 | 5.7 | `4.9+5.2+5.7+5.4+5.8=27` | `27-:5=5.4` |
| 7 | 5.4 | `5.2+5.7+5.4+5.8+5.9=28` | `28-:5=5.6` |
| 8 | 5.8 | `5.7+5.4+5.8+5.9+6=28.8` | `28.8-:5=5.76` |
| 9 | 5.9 | `5.4+5.8+5.9+6+5.2=28.3` | `28.3-:5=5.66` |
| 10 | 6 | `5.8+5.9+6+5.2+4.8=27.7` | `27.7-:5=5.54` |
| 11 | 5.2 | | |
| 12 | 4.8 | | |
This material is intended as a summary. Use your textbook for detail explanation.
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