The FORECAST Function predicts a future value using existing values. Use the Output Range text box to establish the worksheet range into which you want to place the moving average data.To specify that another number of values are to be used to calculate the moving average, enter that value into the Interval text box. Indicate how many values are to be included in the moving average calculation in the Interval text box. By default, Excel uses the most recent three values to calculate the moving average (i.e 3 month moving average, 3 year moving average, etc.).Your range reference should use absolute cell addresses ($A$1:$A$5 as opposed to A1:A5). Then identify the input range, either by typing a worksheet range address or by selecting the worksheet range. Click in the Input Range text box of the Moving Average dialog box. Identify the data you want to use to calculate the moving average.Select the Data tab, then Data Analysis command button. In the Data Analysis dialog box, select the Moving Average item from the list and then click OK.The risk in Moving Average forecasting is that it can lag behind a trend. That forecast can then be used in further forecasting down the line, averaging it with other time period values. The forecasting methods explained include: moving average, the Excel FORECAST function, trendline and regression using the Analysis ToolPak.Ī moving average predicts the future value of a time period through averaging past time period values. This post provides four solid forecasting options in Microsoft Excel that can be used to predict sales, operating costs, performance and more. Quantitative forecasts are as in-demand as ever. Excel, Inventory Management, Purchasing, Supply Chain Management Excel, Inventory Management, Purchasing, Supply Chain ManagementĤ Forecasting functions in Microsoft Excel
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