Question

4. Explain the Moving Average Method of determining trend values. Compare it with
the method of least squares in terms of its merits and limitations.
Compute 4-yearly moving averages for the following data:
Year
Year
Profits (in
Thousands
INR)
Profits (in
Thousands
INR)
2008
98
2009
28
2015
2010
34
2016
42
132
2012
S2
2018
2013
178​

Answer 1

Explanation:

A moving average is a technique to get an overall idea of the trends in a data set; it is an average of any subset of numbers. The moving average is extremely useful for forecasting long-term trends. You can calculate it for any period of time.