Forums › ACCA Forums › ACCA MA Management Accounting Forums › Time Series/Moving averages
- This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
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- September 2, 2014 at 5:50 am #193254
in my study text, a solved example uses 3 years of quarterly sales figures to calculate the moving avg.
thus, the example shows: the moving average (ma) as (q1+q2+q3+q4)/4 and so on. i understand this.
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in the next example, it gives MONTHLY sales for 2 years (x1 and x2). and it says to calculate “a moving annual total”following the previous example, the first moving total shd be (j+f+m+a+m+j+j+a+s+o+n+d)/12
BUT the first total is calculated as
(f+m+a+m+j+j+a+s+o+n+d+j)/12, that is, it starts from feb of year x1 and ends at jan of x2… and so on….
why?
September 2, 2014 at 7:44 am #193265Without seeing the full example I am afraid that I cannot help you.
On the information that you have given, I would certainly have calculated (jan to dec)/12 first, following by (feb to jan)/12 and so on.
September 2, 2014 at 7:59 am #193269i thought so…:(
i am reviewing from bpp text for MA2. is there any way i cd send u an image of the scanned page?
i have read the example quite a few times but i dont find an explanation y it is doing so….
September 2, 2014 at 8:04 am #193271No – the website doesn’t allow the uploading of scanned pages.
However, I would not worry too much about it 🙂 - AuthorPosts
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