Activity 9

Three years moving Average

Aim : To find the trend values by three years moving
average method

Objectives : The average values for a number of years

(months or weeks) is taken and placed against the middle of
the period. If the period taken is equal to the length of one
cycle (or two cycles , or more cycles) then this results is
elimination of cycles

Procedure :

𝑥1 , 𝑥2 , 𝑥3 , … , 𝑥𝑛 𝑖𝑠 𝑡ℎ𝑒 𝑔𝑖𝑣𝑒𝑛 𝑎𝑛𝑛𝑢𝑎𝑙 𝑡𝑖𝑚𝑒 𝑠𝑒𝑟𝑖𝑒𝑠, 𝑇ℎ𝑒𝑛

𝑥1 + 𝑥2 + 𝑥3 ,𝑥2 + 𝑥3 + 𝑥4 ,𝑥3 + 𝑥4 + 𝑥5 , … It gives

three years moving total Which are to be placed against
years 2,3,4,…
𝑥1 +𝑥2 +𝑥3 𝑥2 +𝑥3 +𝑥4 𝑥3 +𝑥4 +𝑥5
, , ,…It gives three years
3 3 3
moving averages which are to be placed against years
2,3,4,...

Take values 𝑥1 , 𝑥2 , 𝑥3 , … , 𝑥𝑛 , & Three years moving

average value and plot the points in the graph

Trend values must be drawn in dotted lines and given

values in straight lines

Conclusion : We can find the trend values of the given year

and future years too
 Activity 10
Four years moving Average
Aim : To find the trend values by Four years moving
average method

Objectives : The average values for a number of years

(months or weeks) is taken and placed against the middle of
the period. If the period taken is equal to the length of one
cycle (or two cycles , or more cycles) then this results is
elimination of cycles

Procedure : 𝑥1
, 𝑥2 , 𝑥3 , … , 𝑥𝑛 𝑖𝑠 𝑡ℎ𝑒 𝑔𝑖𝑣𝑒𝑛 𝑎𝑛𝑛𝑢𝑎𝑙 𝑡𝑖𝑚𝑒 𝑠𝑒𝑟𝑖𝑒𝑠, 𝑇ℎ𝑒𝑛

𝑥1 + 𝑥2 + 𝑥3 + 𝑥4 ,𝑥2 + 𝑥3 + 𝑥4 + 𝑥5 ,𝑥3 + 𝑥4 + 𝑥5 +
𝑥6 , … It gives four years moving total Which are to be
placed against years in the middle of 2 & 3 , 3&4, 4&5 ,…
𝑥1 +𝑥2 +𝑥3 +𝑥4 𝑥2 +𝑥3 +𝑥4 +𝑥5 𝑥3 +𝑥4 +𝑥5 +𝑥6
, , ,…It gives
4 4 4
four years moving averages which are to be placed against
year 2.5,3.5,4.5, ...

Find the sum of values in the year 2.5+3.5 , 3.5+4.5

,4.5+5.5,…

It gives four years centered moving total which are to be

place against the year 3, 4, 5, …
 2.5+3.5 3.5+4.5 4.5+5.5
Find the average’s of the years : , , ,…
2 2 2
it gives four years centered moving trend values which are
to be place against the year 3, 4, 5, …

values 𝑥1 , 𝑥2 , 𝑥3 , … , 𝑥𝑛 , & Three years moving average

value and plot the points in the graph

Trend values must be drawn in dotted lines and given

values in straight lines

Conclusion : We can find the trend values of the given year

and future years too