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Quantative sales forecasting
How business use past data to predict future sales
Moving averages
Used to smooth fluctuations in data
Period
A fixed amount of time
Week, month,year
Three period moving average
Calculates the average of periods 1,2,3 then periods of 2,3,4 and so on
Add three years together and divide by three
Place the answer in the middle number of the three periods
Four quarter moving average
Takes average over quarters of the year
This can remove seasonal variation data
Find average of two quarters and then place agaisnt third quarter of first moving average