127k views
2 votes
How many periods can you use for an n period moving average?

User Uerschel
by
8.3k points

1 Answer

3 votes

Final answer:

The number of periods you can use for an n-period moving average depends on the length of the data set and the desired level of smoothing or sensitivity to changes.

Step-by-step explanation:

An n-period moving average is a mathematical calculation used to analyze trends over time. It involves taking the average of a set of data points over a specific number of periods or time intervals. The number of periods you can use for an n-period moving average depends on the length of the data set and the desired level of smoothing or sensitivity to changes. For example, if you have daily data for a year and want to calculate a 5-day moving average, you can use a maximum of 252 (365 - 5 + 1) periods. This is because you need a minimum of 5 data points to start the moving average calculation, and the last 5 data points at the end of the year cannot be used because there are no subsequent days to include in the average.

User Tanmoy Bhowmick
by
7.0k points

No related questions found