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Graphs of Moving Averages

Discussion in 'Mathematics' started by stuartwithau, Jan 19, 2011.

  1. I have come across a text that instructs pupils to join the points on a graph of moving averages. If this is a trend line, as I understand it should it not be drawn as a line of best fit? Especially if it is being used to predict outcomes in the future. What do you think?
     
  2. I have come across a text that instructs pupils to join the points on a graph of moving averages. If this is a trend line, as I understand it should it not be drawn as a line of best fit? Especially if it is being used to predict outcomes in the future. What do you think?
     
  3. Essentially, Stuart, it depends on the data and the purpose for which the graph is being constructed.
    In some situations joining the dots may have some validity while doing a trend line is inappropriate (for example when there is no reason to believe the past will predict the future). In other cases only the trend line may be appropriate, and in futher cases either or both may have some validity.

     

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