Moving Average
A smoothing technique used in time-series analysis that calculates the average of a set number of consecutive data point...
Formula
Moving Average = Sum of n consecutive values ÷ n
Real World
A Primark buyer calculating a 4-point moving average on quarterly coat sales would smooth out the winter spike to see whether the underlying long-term trend is rising or falling year on year.
Exam Focus
Show all workings in moving average calculations — marks are awarded for each correctly placed average value, not just the final answer.
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