Ratio-to-Moving-Average Forecasting Method

A Ratio-to-Moving-Average Forecasting Method is a forecasting method that ..

• See: Trend-Cycle Component, Moving Average Algorithm.

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References

2014

• http://people.duke.edu/~rnau/411outbd.htm
  • QUOTE: The next step is to compute the ratio to moving average -- i.e., the original data divided by the moving average in each period -- which is performed here in column E. (This is also called the "trend-cycle" component of the pattern, insofar as trend and business-cycle effects might be considered to be all that remains after averaging over a whole year's worth of data. Of course, month-to-month changes that are not due to seasonality could be determined by many other factors, but the 12-month average smooths over them to a great extent.)

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