Characteristics and limitations of moving average, Mathematics

Assignment Help:

Characteristics and Limitations of moving average

Characteristics of moving average

1) The more the number of periods in the moving average, the greater the smoothing effect.

2) Various moving averages produce various forecasts.

3) The more the randomness of data along with underlying trend being constant then the more the periods should be included in the moving averages.

Limitations of moving averages

1) Equal weighing along with disregard to how more recent data is more relevant.

2) Moving average ignores data outside the period of the average hence it does not fully utilize available data.

3) Where there is an underlying seasonal variation, forecasting along with unadjusted moving average can be misleading.


Related Discussions:- Characteristics and limitations of moving average

Calculus, I need help with my calculus

I need help with my calculus

Determine the eigenvalues and eigenvectors of the matrix, Determine the eig...

Determine the eigenvalues and eigenvectors of the subsequent matrix. Solution : The first thing that we require to do is determine the eigen-values. It means we require

Determine the price paid for a land, A parcel of land, value $250,000 is so...

A parcel of land, value $250,000 is sold to an investor who signs a contract agreeing to pay a deposit of $25,000 followed by equal quarterly payments for as long as necessary, wit

What is the total balance of an account after 18 months, A certain bank pay...

A certain bank pays 3.4% interest per year for a certificate of deposit, or CD. What is the total balance of an account after 18 months along with an initial deposit of $1,250?

Rlc circuit, State clearly that the current in an RLC circuit with an AC so...

State clearly that the current in an RLC circuit with an AC source with and without the use of complex variables

Surds and logarithms, what are these all about and could i have some exampl...

what are these all about and could i have some examples of them please

Explain the dependent events, Explain the Dependent Events? Events are ...

Explain the Dependent Events? Events are called dependent events when the outcome of one event influences the outcome of the second event. P(A and B) = P(A) P(B following A

Angles of elevation and depression, Can someone please help me grasp the co...

Can someone please help me grasp the concept of angles of depression and elevation?

Differential equations, solve the differential equation 8yk+2-6yk+1+yk=9 ,k...

solve the differential equation 8yk+2-6yk+1+yk=9 ,k=0 given that Y0=1 and y1=3/2

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd