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A centered moving average in Excel refers to a statistical method used to smooth out fluctuations in data and identify trends. It involves calculating the average of a specific number of data points, with an equal number of points on either side. This creates a moving average that is centered around each data point, providing a more accurate representation of the overall trend. To calculate a centered moving average in Excel, one can use the AVERAGE function combined with the OFFSET function to specify the range of data points to be included in the calculation. By using this method, one can effectively analyze and interpret data in a more precise and reliable manner.
Calculate a Centered Moving Average in Excel
In time series analysis, a centered moving average is the moving average of a certain number of values, centered around a specific period.
The following example shows how to calculate a centered moving average for a dataset in Excel.
Example: How to Calculate Centered Moving Average in Excel
Suppose we have the following dataset that shows the total sales made during 12 consecutive months by some company:
Suppose we would like to calculate a 3-month centered moving average of sales values.
To do so, we can type the following formula into cell C3:
=AVERAGE(B2:B4)
We can then click and drag this formula down to each remaining cell in column C:
The values in column C represent the 3-month centered moving average of the values in the sales column.
For example, the 3-month centered moving average of sales in February is 25.667.
The formula uses the sales values in January, February and March to calculate this average:
3-Month Centered Moving Avg. of Sales in February: (22+25+30) / 3 = 25.667
This matches the value calculated by our formula.
We can also use a different number of months to calculate the centered moving average values.
=AVERAGE(B2:B6)
We can then click and drag this formula down to each remaining cell in column C:
The values in column C now represent the 5-month centered moving average of the values in the sales column.
For example, the 5-month centered moving average of sales in March is 28.
The formula uses the sales values in January, February, March, April and May to calculate this average:
5-Month Centered Moving Avg. of Sales in March: (22+25+30+34+29) / 5 = 28
This matches the value calculated by our formula.
The following tutorials explain how to perform other common tasks in Excel:
Cite this article
stats writer (2024). How do I calculate a centered moving average in Excel?. PSYCHOLOGICAL SCALES. Retrieved from https://scales.arabpsychology.com/stats/how-do-i-calculate-a-centered-moving-average-in-excel/
stats writer. "How do I calculate a centered moving average in Excel?." PSYCHOLOGICAL SCALES, 22 Jun. 2024, https://scales.arabpsychology.com/stats/how-do-i-calculate-a-centered-moving-average-in-excel/.
stats writer. "How do I calculate a centered moving average in Excel?." PSYCHOLOGICAL SCALES, 2024. https://scales.arabpsychology.com/stats/how-do-i-calculate-a-centered-moving-average-in-excel/.
stats writer (2024) 'How do I calculate a centered moving average in Excel?', PSYCHOLOGICAL SCALES. Available at: https://scales.arabpsychology.com/stats/how-do-i-calculate-a-centered-moving-average-in-excel/.
[1] stats writer, "How do I calculate a centered moving average in Excel?," PSYCHOLOGICAL SCALES, vol. X, no. Y, ص Z-Z, June, 2024.
stats writer. How do I calculate a centered moving average in Excel?. PSYCHOLOGICAL SCALES. 2024;vol(issue):pages.