Thursday, April 29, 2010

Moving Average method

Concept, meaning and definition

- Under this method, average of the combined employment level data for the forecasted employment level for the next period.
- It requires careful selection of time periods, which may be 6 period, 10 period, 12 period moving average.
- Technique is useful to guard against random fluctuations.
- Considering more time periods, we may get better results.
- Weights may be assigned for different time periods at the discretion of the analyst.

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