Definition of a Rolling or Moving Average
Date: 03/05/2004 at 13:53:37 From: Pam Subject: Rolling Average When someone says they have calculated a "rolling average," what exactly does that mean? I cannot find the definition in any math books. I assume that if you calculate a rolling average for a one year period, for example, it means taking January through December for the first period and averaging that data, then taking February through January for the next period and averaging that, then moving on to March through February and so on.
Date: 03/05/2004 at 14:05:36 From: Doctor Douglas Subject: Re: Rolling Average Hi Pam, Thanks for writing to the Math Forum. Yes, that is exactly what it means. The term "rolling average" is used in the financial community. In statistics and mathematics, the term "moving average" is usually used. You can read more about it here: Eric Weisstein's World of Mathematics -- Moving Average http://mathworld.wolfram.com/MovingAverage.html Please write back if you have any further questions. - Doctor Douglas, The Math Forum http://mathforum.org/dr.math/
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