asked 73.2k views
3 votes
For a five-year moving average, how many values will be lost at the beginning and end of the time series?

1 Answer

5 votes

Answer:

2 Values

Explanation:

For a five-year moving average, two values will be lost at the beginning and end of the time series.

This is because we add the first five elements and divide it by 5 to get the five year moving average. But the middle value of 5 is 2.5 which is greater than 2 so the result is placed against the third value. In this way the first two and last 2 values are lost.

For understanding let us compute the 5 year moving average as

a1= 1/5( y1+ y2+y3+ y4+y5)

a2= 1/5 ( y2+y3+ y4+y5+ y6)

a3 = 1/5(y3+ y4+y5+ y6+ y7)

a4= 1/5(y4+y5+ y6+ y7+ y8)

a5= 1/5(y5+ y6+ y7+y8+y9)

The average so obtained are placed opposite the middle year of each group.

So the values at the y1,y2 ,at the beginnign and at the end y8 and y9 are lost.

answered
User Sajadre
by
8.3k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.