Moving average forecasting method

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Moving average forecasting is a technique that uses past data points over a certain period of time to project future values. The method is based on the assumption that recent data points are the best predictors of what is likely to come in the future. It is also known as a "rolling average" or "rolling mean". With this method a set number of data points are used to compute the average value of a given series (called the moving average line). Then, this average line is used to make predictions about future values. This method is useful for getting a general sense of future values. The greater the number of data points used to calculate the moving average the more accurate the forecast will be.

Answered by robertandrews

Predicts that demand for the next period will be the average of actual demand for the previous n periods, where n is specified in the problem

Answered by April Sherman

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