Learn how to calculate a predicted sales figure for a particular month given averages for the previous 12 months using Microsoft Excel.
- Sometimes, it's better to handle chunks of data…when dealing with a time series.…So instead of looking at a sales figure one month at a time,…we may get a higher level insight by chunking a few months…together, and seeing how that chunk compares…to other months that are chunked together.…This is call a simple moving average.…Sometimes it's even referred to as a rolling average.…I'm in the 02_02_Begin worksheet in the exercise files,…so feel free to follow along there.…These are the same sales figures…as 02_01 from the sporting goods store.…
The moving average will give us a bit more…seasonal insight than the naive approach.…I like it a little bit better.…I'm going to do a three-month moving average.…This method will predict the sales figures for each month,…starting with April 2015.…So we're going to start here.…Since we don't have a figure for July in this data set,…I'm going to go ahead and delete it in Row 32, for now.…To do a three-month moving average, I'll have to take the…average of the first three months.…
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- Explain the four different types of financial statements.
- Distinguish between the types of moving averages.
- Determine a seasonal adjusted trend.
- Break down pro-forma financial statements.
- Identify cash flows, and what increased liabilities and decreased earnings generally indicate.
- Tell what a regression is.
- Outline the naive approach.