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Smoothing · Free

Moving average

Average the last k points; the window is chosen by fit among {3, 5, 7, 12}.

What it assumes

The local mean is slowly changing; last k points are equally informative.

When to use

Noisy level with little trend.

When to avoid

Strong trend (it lags) or long seasonal waves.

Knobs

Window k chosen by in-sample SSE among {3,5,7,12}.

How it works

A moving-average forecast treats the last k observations as equally informative and ignores everything older. WhichForecast picks k from a small set by in-sample SSE, then still ranks the method on rolling-origin MASE. Equal weights lag a trend and smear a seasonal wave, so MA is a noise-killer for a wandering level — not a trend or season model.

Sample forecast question

Daily ticket counts wobble around 19 with no trend. What is the moving-average forecast for the next three days?

Step-by-step on these numbers

Sample series (tickets)
PeriodActualFitted
D11818
D22118
D31719.50
D42018.67
D51919
D62219
D71819.50
D82019.29
Forecast
PeriodForecast95% interval
D919.5715.74 – 23.40
D1019.5714.15 – 24.99
D1119.5712.94 – 26.21

Parameters the engine found

  • k = 7
  • last = 19.571
  1. The question

    Daily ticket counts wobble around 19 with no trend. What is the moving-average forecast for the next three days? Sample days: D1=18, D2=21, D3=17, D4=20, D5=19, D6=22, D7=18, D8=20 (tickets).

  2. Choose a window

    The engine tries k ∈ {3, 5, 7, 12} (capped by n = 8) and keeps the k with smallest in-sample SSE. Here k = 7.

  3. Last window

    Average of the last 7 points 21, 17, 20, 19, 22, 18, 20 = 19.57. The forward forecast holds that mean.

  4. Forecast

    D9: 19.57; D10: 19.57; D11: 19.57.

  5. Interval

    Residual σ = 1.954. For h = 1 the 95% band is [15.74, 23.40] around 19.57. The engine labels this a residual-Gaussian heuristic (σ√h), not a simulation interval.

Graph of this sample

D1 · 18 D8 D9
Moving average on the canned sample: actuals, fitted, and a 3-step forecast. Actual Fitted Forecast
The chart plots the canned table on this page (actuals, in-sample fitted, forecast, 95% interval). Not your Excel series. Free analysis never uploads raw data.

Educational only. Not investment, weather, or operational advice. In the add-in, rank is rolling-origin MASE — “best supported among candidates on this series.”

Use it in the Excel Add-in