11/18/21, 11:46 AM Example of Moving Average - Minitab

Example of Moving Average

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A toothpaste retailer collects sales data and the number of commercials that were broadcast
during the previous 60 weeks. The retailer creates a time-series model for prediction of sales.

1. Open the sample data, ToothpasteSales.MTW.

2. Choose Stat > Time Series > Moving Average.

3. In Variable, enter Sales.

4. In MA length, enter 2.

5. Select Generate forecasts. In Number of forecasts, enter 6.

6. Click OK.

Interpret the results

On the moving average plot, the forecasts and line closely follow the data, especially at the end of
the series. The retailer can be 95% confident that the sales will be between approximately 53 and
67 for the next 6 months.

Moving Average for Sales

Method

Data Sales

Length 101

NMissing 0

Moving Average

Length 2

Accuracy Measures

MAPE 8.8780

MAD 2.9242

MSD 13.8308

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11/18/21, 11:46 AM Example of Moving Average - Minitab

Forecasts

Period Forecast Lower Upper

102 60 52.7109 67.2891

103 60 52.7109 67.2891

104 60 52.7109 67.2891

105 60 52.7109 67.2891

106 60 52.7109 67.2891

107 60 52.7109 67.2891

Moving Average Plot for Sales

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11/18/21, 11:46 AM Example of Moving Average - Minitab

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