Definition of Moving average:
A succession of averages derived from successive segments (typically of constant size and overlapping) of a series of values.
Mean of time series data (observations equally spaced in time) from several consecutive periods. Called moving because it is continually recomputed as new data becomes available, it progresses by dropping the earliest value and adding the latest value. For example, the moving average of six-month sales may be computed by taking the average of sales from January to June, then the average of sales from February to July, then of March to August, and so on. Moving averages (1) reduce the effect of temporary variations in data, (2) improve the fit of data to a line (a process called smoothing) to show the datas trend more clearly, and (3) highlight any value above or below the trend.
How to use Moving average in a sentence?
- When you are trying to figure out some numbers that change often the best you can do is calculate the moving average .
- The moving average shows the average value of a stock over time.
- I wanted to know what the moving average was of the data, so I would have a better understanding of how we were doing.
- If you are calculating something with very high variance the best you may be able to do is figure out the moving average .
Meaning of Moving average & Moving average Definition