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Excel - Moving Averages How??

Hi, i'm going through samples of these and stumble across difficulties.

I'll best lay a diagram


Year - 2005, 2006, 2007, 2008, 2009
Quarter - 1 2 3 4, 1 2 3 4, 1 2 3 4 , etc.
Time Period (x) 1 to n (depending how many data i have)

I believe theses are more vital than the data. I understand its a 4 point so my first approach is to make a new column and name it : 4 Point Moving Average and with that i select my data ie. =AVERAGE(32+49+49+39)

it doesnt seem to be the correct answer in the solutions. This is the correct answer in solution =(AVERAGE(32+49+49+39)+AVERAGE(49+49+39+12))/2.

The question i'm asking you clever people is why is this? Other 4 Point Moving average i've come across wasn't the same approach as solutions. Also what if it was 6 point moving average? Same principle???

Thanks, rep will be added
Reply 1
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thetroll
8
Depends on the type of MA. The Simple Moving Average is just the mean of the last n data points (4 or 6 in your examples). That solution is for some kind of weighted moving average (ie, giving more emphasis to recent data). I'm sure there's plenty in Wikipedia about the various forms of Moving Average

Check carefully what the question is actually asking...
Reply 2
Avatar for 2Av
2Av
OP
1
thetroll
Depends on the type of MA. The Simple Moving Average is just the mean of the last n data points (4 or 6 in your examples). That solution is for some kind of weighted moving average (ie, giving more emphasis to recent data). I'm sure there's plenty in Wikipedia about the various forms of Moving Average

Check carefully what the question is actually asking...


Sorry for l8 reply but appreciate your help. I think i understand the "just" of how it works. Rep added .

Thanks :biggrin: :biggrin:

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