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Moving Average

This example teaches you how to calculate the moving average of a time series or other data series. A moving average is used to smooth out irregularities (peaks and valleys) to easily recognize trends.

First, let's take a look at our time series:

Obviously it has a big seasonal feature, peaks and valleys can be easily recognized.

1. Select "Time Series" and click OK.

2. In the Type box select Moving Average and Means.

3. Click in the Input Range box and select the range B4:B55.

5. Click in the Output Range and select C1.

6. Click in the Window Size and write for example 4.

7. Click OK.

Result:

The new, yellow line represents the moving average. As a result, peaks and valleys are smoothed out. The graph is revealing a slightly increasing trend.

Explanation: because we set the interval (window size) to 4, the moving average is the average of the previous 3 data points and the current data point. Modeller cannot calculate the moving average for the first 3 data points because there are not enough previous data points.

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