While moving average is able to capture the principle that more recent points are important, the older points do not contribute much. Which means this noise has a mean of zero which also means that these inherent variation or statistical fluctuations will cancel out as time passes. This data shows a certain increase or decrease which essentially means that in both these instances the person believes that there is a trend and here also there is a trend. Table of Contents: • Formal definitions and terminology - DT - Mod-02 Lec-02 Forecasting -- Time series models -- Simple Exponential smoothing • Core principles and mechanisms • Formal definitions and concepts • Relationships and dependencies
While moving average is able to capture the principle that more recent points are important, the older points do not contribute much. Which means this noise has a mean of zero which also means that t…