Formula
Examples
1) 3 year Weighted 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 Weighted Moving Average with weight=1,2,1
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 |
|---|
The weights of the 3 years are respectively 1,2,1 and their sum is 4
Calculation of 3 year moving averages of the data
(1)
year | (2)
Sales | (3)
3 year weighted moving total | (4)
3 year weighted moving average
`(3)-:4` |
| 1 | 5.2 | | |
| 2 | 4.9 | `1xx5.2+2xx4.9+1xx5.5=20.5` | `20.5-:4=5.125` |
| 3 | 5.5 | `1xx4.9+2xx5.5+1xx4.9=20.8` | `20.8-:4=5.2` |
| 4 | 4.9 | `1xx5.5+2xx4.9+1xx5.2=20.5` | `20.5-:4=5.125` |
| 5 | 5.2 | `1xx4.9+2xx5.2+1xx5.7=21` | `21-:4=5.25` |
| 6 | 5.7 | `1xx5.2+2xx5.7+1xx5.4=22` | `22-:4=5.5` |
| 7 | 5.4 | `1xx5.7+2xx5.4+1xx5.8=22.3` | `22.3-:4=5.575` |
| 8 | 5.8 | `1xx5.4+2xx5.8+1xx5.9=22.9` | `22.9-:4=5.725` |
| 9 | 5.9 | `1xx5.8+2xx5.9+1xx6=23.6` | `23.6-:4=5.9` |
| 10 | 6 | `1xx5.9+2xx6+1xx5.2=23.1` | `23.1-:4=5.775` |
| 11 | 5.2 | `1xx6+2xx5.2+1xx4.8=21.2` | `21.2-:4=5.3` |
| 12 | 4.8 | | |
2) 3 year Weighted 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 Weighted Moving Average with weight=1,2,1
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 |
|---|
The weights of the 3 years are respectively 1,2,1 and their sum is 4
Calculation of 3 year moving averages of the data
(1)
year | (2)
Sales | (3)
3 year weighted moving total | (4)
3 year weighted moving average
`(3)-:4` |
| 1 | 30 | | |
| 2 | 25 | `1xx30+2xx25+1xx35=115` | `115-:4=28.75` |
| 3 | 35 | `1xx25+2xx35+1xx25=120` | `120-:4=30` |
| 4 | 25 | `1xx35+2xx25+1xx20=105` | `105-:4=26.25` |
| 5 | 20 | `1xx25+2xx20+1xx30=95` | `95-:4=23.75` |
| 6 | 30 | `1xx20+2xx30+1xx35=115` | `115-:4=28.75` |
| 7 | 35 | `1xx30+2xx35+1xx40=140` | `140-:4=35` |
| 8 | 40 | `1xx35+2xx40+1xx30=145` | `145-:4=36.25` |
| 9 | 30 | `1xx40+2xx30+1xx45=145` | `145-:4=36.25` |
| 10 | 45 | | |
This material is intended as a summary. Use your textbook for detail explanation.
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