Paint Sales Time Series
Week
Sales (000’s of gallons)
1
6
2
8
3
10
4
9
5
11
6
12
7
10
8
8
9
7
10
9
To analyze the paint sales time series data, we can use a simple moving average method to smooth out any fluctuations and identify any underlying patterns or trends.
Here's how you can calculate the simple moving average:
1. Determine the desired window size or period. This refers to the number of consecutive weeks over which you want to calculate the average.
2. Add up the sales values for the specified number of weeks. For example, if you choose a window size of 4 weeks, you would add up the sales for week 1, 2, 3, and 4.
3. Divide the total by the window size. In this case, divide the total by 4 to get the average.
4. Shift the window by one week and repeat the process to calculate the moving average for the next set of weeks. For example, for window 2 (weeks 2 to 5), you would add up the sales for weeks 2, 3, 4, and 5, and then divide by 4.
5. Continue this process until you have calculated the moving average for all the available data.
Here's an example of how to calculate the simple moving average for the given paint sales data using a window size of 4 weeks:
Week Sales
1 6
2 8
3 10
4 9
5 11
6 12
7 10
8 8
9 7
10 9
Week 1 to 4: (6 + 8 + 10 + 9) / 4 = 8.25
Week 2 to 5: (8 + 10 + 9 + 11) / 4 = 9.5
Week 3 to 6: (10 + 9 + 11 + 12) / 4 = 10.5
Week 4 to 7: (9 + 11 + 12 + 10) / 4 = 10.5
Week 5 to 8: (11 + 12 + 10 + 8) / 4 = 10.25
Week 6 to 9: (12 + 10 + 8 + 7) / 4 = 9.25
Week 7 to 10: (10 + 8 + 7 + 9) / 4 = 8.5
By calculating the simple moving average, you can see how the sales data varies over time and identify any potential trends or patterns.