What Is a Moving Weighted Average?
A moving weighted average is an average of multiple figures which has two specific characteristics. First, it gives added emphasis, or weight, to recent figures in preference to older figures. In addition, as a moving average, the set of figures used changes over time to remain up-to-date. The moving weighted average can be used for a wide variety of mathematical purposes, though one of the most common is for making forecasts for either a business or a market.
A moving weighted average is an average of multiple figures which has two specific characteristics. First, it gives added emphasis, or weight, to recent figures in preference to older figures. In addition, as a moving average, the set of figures used changes over time to remain up-to-date. The moving weighted average can be used for a wide variety of mathematical purposes, though one of the most common is for making forecasts for either a business or a market. One example of a moving average would be if a store kept track of its average sales over the past thirty days. On the 30th day of the year, this average would cover days 1 to 30. On the 31st day of the year, the average would cover days 2 to 31. On the 32nd day of the year, the average would cover days 3 to 32, and so on.
