Moving averages and trend fitting
Correlation, regression and applied statistics · Mathematics
Study notes
Q: Sales: 10, 14, 12, 16, 14. Compute 3-point moving averages. MA₁ = (10+14+12)/3 = 36/3 = 12. MA₂ = (14+12+16)/3 = 42/3 = 14. MA₃ = (12+16+14)/3 = 42/3 = 14. Smoothed: 12, 14, 14 - trend visible, zigzag gone!