Moving Averages 移动平均 Used for Smoothing Series of arithmetic means over time Result dependent upon choice of l, length of Period for Computing means For Annual Time-series Should be odd Example: 3-year Moving Average 口 First Average MA(3/≈y1+Y2+Y 3 口 Second Average: MA(3) 2+Y3+Y 3Moving Averages 移动平均 • Used for Smoothing • Series of Arithmetic Means Over Time • Result Dependent Upon Choice of L, Length of Period for Computing Means • For Annual Time-Series, L Should be Odd • Example: 3-year Moving Average  First Average:  Second Average: 3 3 Y1 Y2 Y3 MA ( ) + + = 3 3 Y2 Y3 Y4 MA ( ) + + =