1) 5 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 5 year Weighted Moving Average with weight=1,2,1,2,1
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 5 years are respectively 1,2,1,2,1 and their sum is 7
Calculation of 5 year moving averages of the data
(1)
year | (2)
Sales | (3)
5 year weighted moving total | (4)
5 year weighted moving average
`(3)-:7` |
| 1 | 5.2 | | |
| 2 | 4.9 | | |
| 3 | 5.5 | `1xx5.2+2xx4.9+1xx5.5+2xx4.9+1xx5.2=35.5` | `35.5-:7=5.0714` |
| 4 | 4.9 | `1xx4.9+2xx5.5+1xx4.9+2xx5.2+1xx5.7=36.9` | `36.9-:7=5.2714` |
| 5 | 5.2 | `1xx5.5+2xx4.9+1xx5.2+2xx5.7+1xx5.4=37.3` | `37.3-:7=5.3286` |
| 6 | 5.7 | `1xx4.9+2xx5.2+1xx5.7+2xx5.4+1xx5.8=37.6` | `37.6-:7=5.3714` |
| 7 | 5.4 | `1xx5.2+2xx5.7+1xx5.4+2xx5.8+1xx5.9=39.5` | `39.5-:7=5.6429` |
| 8 | 5.8 | `1xx5.7+2xx5.4+1xx5.8+2xx5.9+1xx6=40.1` | `40.1-:7=5.7286` |
| 9 | 5.9 | `1xx5.4+2xx5.8+1xx5.9+2xx6+1xx5.2=40.1` | `40.1-:7=5.7286` |
| 10 | 6 | `1xx5.8+2xx5.9+1xx6+2xx5.2+1xx4.8=38.8` | `38.8-:7=5.5429` |
| 11 | 5.2 | | |
| 12 | 4.8 | | |
This material is intended as a summary. Use your textbook for detail explanation.
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