### Possible Answer

May 6, 2010 ... Moving average methods come in handy if all you have is several consecutive ... Essentially, moving averages try to estimate the next period's value by ... want to give those nearer months more weight in your forecast model. .... the loss of observations at the end means having to rely on forecasts for the lost ... - read more

Equal weights are assigned to each observation used in the average. ... The moving average model does not handle trend or seasonality very well although it can ... The aim is to estimate the current level and use it as a forecast of future value. - read more

Please vote if the answer you were given helped you or not, thats the best way to improve our algorithm. You can also submit an answer or search documents about what is how do you determine how many observations to average in a moving average model.