Calculate the 3-month moving averages for the data.
b.Calculate the 6-month moving averages for the data.
c.Which seems to be more stable? Why? Supply chain management
Answers
Calculated Percent Over Last Year. Method 3: Last Year to This Year. Method 4: Moving Average. Method 5: Linear Approximation. Method
The simple moving average (SMA) was prevalent before the emergence of computers because it is easy to calculate. Today's processing power has made other types of moving averages and technical indicators easier to measure. A moving average is calculated from the average closing prices for a specified period. A moving average typically uses daily closing prices, but it can also be calculated for other timeframes. Other price data such as the opening price or the median price can also be used. At the end of the new price period, that data is added to the calculation while the oldest price data in the series is eliminated.
For a simple moving average, the formula is the sum of the data points over a given period divided by the number of periods. For example, the closing prices of Apple Inc (AAPL) from June 20 to 26, 2014,