Jai-Alai Question of the Week


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Re(2): #74 - Who uses exponential smoothing?

Posted on January 13, 2005 at 07:44:19 AM by Tiger

Similar, except with WMA the past period weights would be preset (e.g., .9, .8, .7, .6, etc.).

Moving average techniques are inefficient and can give misleading results, especially if there is a lot of variability in the data. For example, you could have a situation where your current (''new'') data value is greater than your current moving average, yet, when you compute your new moving average, it actually goes down, because a higher value has dropped off the (older) back end of the data set.

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