Moving average
The moving average is a simple mathematical technique that is used primarily to eliminate aberrations and reveal a true trend in the data collection points. A moving average is an average of data for a number of time periods that can be used as a proxy for the average observation over a period of time. In calculating the moving average [7, 10, 13, 14], a mathematical analysis of a predetermined time period is made. As the value changes occur, the average value moves up or down. There are five popular types of moving averages: simple (also known as arithmetic), exponential, triangular, variable, and counting. The only major difference between different types of moving averages is the weight assigned to the latest data. Simple moving averages apply equal weight values. Exponential and weighted averages apply more weight to recent values. Triangular averages apply more weight to the values in the middle of a long period of time. And variable moving averages change in weight based on the volatility of values. During a series of X, and for a period p, p-moving average value of vi is
Tuesday, April 12, 2011
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