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Why is a 7-point moving average appropriate for the daily sales of a shop?
If you get a question, for example, asking why a 7-point moving average is appropriate, it's probably something to do with there being seven days in a week.
A 4-point moving average is often used for seasons (Autumn, Winter, Spring, Summer) because there are 4 of them.
Make sure you're answering the question though.
Why do we use a moving average?
is a different question to
Why is a 4-point moving average appropriate to this data?
For the second question, you must be specific as to why a four point moving average is used.
A 4-point moving average is often used for seasons (Autumn, Winter, Spring, Summer) because there are 4 of them.
Make sure you're answering the question though.
Why do we use a moving average?
is a different question to
Why is a 4-point moving average appropriate to this data?
For the second question, you must be specific as to why a four point moving average is used.