Averaging methods
Origin: Lat. pro medio, methŏdus Gr.μέθοδος
Refers to several methods in which data on historical trends can be smoothed. The arithmetic mean can be calculated and used as a forecast. However, this assumes that the time series is based on a fairly constant underlying process. Simple moving averages, which are computed dropping the oldest observation and including the newest, provide a method of damping the influence of previous data sets. Linear moving averages provide a more sophisticated averaging method better suited to addressing trends that involve volatile change.
Spanish: Métodos promedio
Sources and references
- The Futures Group, “Statistical Modeling: from time series to simulationcited 3 times
Term connections
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