calculating moving averages | sums will set you free at abelard.org

# calculating moving averages

### by abelard

site map

 Web abelard.org
 calculating moving averages :: click to select documents about economics and money :: the mechanics of inflation – the great government swindle and how it works GDP 1: gross domestic product GDP 2: GDP and other quality of life measurements EMU (European Monetary Union) and inflation corporate corruption, politics and the 'law' Transferring value (money) using the internet e-gold: a developing example of an independent monetary system moneybookers, a non -goldbased value transfer system PayPal and Billpoint - more detailed information the sum of a geometric sequence : the arithmetic of fractional banking

One way of dealing with the problems where trends are uncertain is to do what is called a moving average.

• What you do is to take, say 5, 10, or 12 steps in a time series. Such a series might be
 time 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 value 15 33 44 87 67 72 59 36 21 19 13 27 39 52 63 74 51 49

and the selected steps are the ten from 1 to 10.

• Next action is to average the chosen values:

(15+33+44+87+67+72+59+36+21+19) / 10 = 45.3

• Now subtract the first data point:
 1 15

and add in the next data point in the series:
 11 13

or (33+44+87+67+72+59+36+21+19+13).

• Average these values (33+44+87+67+72+59+36+21+19+13) / 10 = 45.1

The resulting values, 45.3, 45.1, and so on, form the data points on the moving average graph.

Repeat these actions, as required, to create a ‘moving average’ graph/chart.

A moving average graph is used to iron out errors/variations. It is particularly useful where there is a regular variation. For instance, where seasons effect the data during over each twelve month period, as with monthly sales in a shop.

In summary, there are various ways and reasons to smooth out data:

• in cases of regular variation
• with data subject to ‘random’ perturbation, such as years of temperature data
• to average out values estimated by different workers.

 sums will set you free is included in the series of documents about economics and money at abelard.org. moneybookers information e-gold information fiat money and inflation calculating moving averages the arithmetic of fractional banking :: click to select documents about economics and money :: The mechanics of inflation – the great government swindle and how it works EMU (European Monetary Union) and inflation Corporate corruption, politics and the 'law' GDP and other quality of life measurements Transfering value (money) using the internet e-gold: a developing example of an independent monetary system Moneybookers, a non-gold based value transfer system PayPal and Billpoint - more detailed information The sum of a geometric sequence : the arithmetic of fractional banking Calculating moving averages

disclaimer

 You are here: calculating moving averages < sums will set you free < home

 about abelard memory, paranoia & paradigms francis galton france zone memory & intelligence loud music & hearing damage children & tv violence information abstracts briefings news headlines news archives latest

 email abelard at abelard.org © abelard & the auroran sunset, 2008, 22 january all rights reserved the web address for this page is https://www.abelard.org/sums/moving_averages.php x words. prints as 2 A4 pages (on my printer and set-up)