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Date Actual Moving Ave 6 Moving Ave 4 Moving Ave 2 E S = .1 E S = .5 ES = .8 42155 33152 42185

Date Actual Moving Ave 6 Moving Ave 4 Moving Ave 2 E S = .1 E S = .5 ES = .8
42155 33152
42185 32160
42216 33922
42247 31761
42277 33299
42308 40277
42338 25154
42369 29190
42400 29088
42429 32852
42460 33986
42490 35624
42521 34889
42551 33895
42582 36724
42613 33141
42643 35416
42674 42979
42704 27856
42735 31050
42766 31944
42794 37138
42825 35485
42855 38610

Part 2: Moving Averages (Use worksheet titled Most Recent Sales)

  1. On the Data tab, click Data Analysis.
  2. Select Moving Average and click OK.
  3. Click in the Input Range box and type or select the range $B$2:$B$25
  4. Click in the Interval box and type 6.
  5. Click in the Output Range box and type or select cell $C$2:$C$25
  6. Click OK. Your entries in the Moving Average dialog box should look like this: Explanation: because we set the interval to 6, the moving average is the average of the previous 5 data points and the current data point. Excel cannot calculate the moving average for the first 5 data points because there are not enough previous data points.

Select Column C and format cells:

  1. Repeat steps 2 to 7
    1. interval = 4, output range = $D$2:$D$25 (use Column D)
    2. interval = 2, output range = $E$2:$E$25 (use Column E)
  2. Have Excel produce a scatterplot: Click on cell A1 and drag through to cell E25.
    1. In the Insert tab, click on Scatter in the Charts menu.
    2. Select the first chart in the second row of Scatter menu (Scatterplot with Straight Lines and Markers).
    3. Click OK and your scatterplot will appear with your four graphs.

Part 2 Analysis

  1. Looking at your moving averages graph, which moving average span "smooths" the actual times series the most
  2. Which moving average span most resembles the pattern of the actual time series?
  3. What are the advantages/disadvantages of shorter and longer spans?

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