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Impediments in time series analysis
Accuracy of data in reflecting
a) Drastic changes for illustration in the advent of a major competitor, period of war or unexpected change of taste.
b) For long term forecasting external and internal pressures makes historical data less effective.
Moving Average
Periodical data for illustration monthly sales may have random fluctuation each month despite a common trend being evident. Moving average assists in smoothing away these random changes.
A moving average is the forecast for a period which takes the average of the previous periods.
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Carmen bought 3 pounds of bananas for $1.08. June paid for her purchase of bananas. If they paid the same price per pound, how many pounds did June buy?
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