From the course: Time Series Modeling in Excel, R, and Power BI
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Moving average
From the course: Time Series Modeling in Excel, R, and Power BI
Moving average
- [Instructor] The use of rolling or moving averages lets us even out the fluctuations within time series models. We commonly see rolling averages in data within industries like health, finance and weather, for example. In Excel, we can adjust our trend line to use a rolling average instead of linear regression through the trend line formatting options. We want to select the trend line and then we'll choose to format it. We not only want to determine the field we're calculating the average over, but also the number of periods to do it over, which in this case we'll leave with the default settings of two. If we're calculating a moving average over two periods, for example, we'll use one period in the past and one period in the future unless we specify otherwise. Let's do a two period rolling average for the yearly temperatures to see how they stack up to the moving average we added as a trend line. We'll reuse the field that's…
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