Practice Moving Averages (11.3) - Index Numbers and Moving Averages

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9 questions

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Exercise
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6 sample questions

Question 1.
Define what a moving average is.
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Consider how averages can eliminate noise from data.
Question 2.
What is the formula for a simple moving average?
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Think about a simple average calculation you know.
3Question 3.
What is a moving average used for?
- To find the median
- To smooth fluctuations and identify trends
- To calculate total revenue
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Think about what moving averages do in a data set.
4Question 4.
True or False: A simple moving average can give equal weight to all data points?
- True
- False
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Consider how averages typically work.
Question 5.
Given a dataset of daily temperatures over a week: [70, 72, 68, 75, 73, 71, 74], calculate the 3-day SMA and WMA with weights [1, 2, 3] for the last three days.
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Sum either all or those with weights applied!
Question 6.
In a stock market analysis, you track a stock’s prices for a month and calculate a simple moving average. Explain your process and any potential limitations of this method.
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How might equal weighting affect your analysis?

5 more questions in this section. Enroll free to practise them all.