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3 cards from this section. Quick, good the night before a test.
What is a moving average?
Think about how averages can be used to observe trends.
Name one application of moving averages.
Consider different fields that rely on data analysis.
What is the purpose of moving averages?
Think about why analyzing trends might be beneficial.
True or False: A weighted moving average treats all data points equally.
Consider the difference between weighting and not weighting data.
You have monthly sales data for six months: [100, 150, 200, 250, 300, 350]. Calculate and explain both the simple moving average and the weighted moving average (where the most recent month has a weight of 3, and the others have a weight of 1).
Break down each step and remember to multiply the weights for the weighted average!
How might the choice between using simple or weighted moving averages impact a financial analyst’s decision regarding stock investments in a fluctuating market?
Think about why recent data might have more significance in forecasting.
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