2
votes

I am generating trendline for the given data points using excel trendline formula. In normal case (without empty points) moving average is working fine. But i not able to proceed with empty points for moving average trendline. I couldn't find out the moving average formula for empty points. Please refer the below excel moving average chart with period 2

enter image description here

If i changed period value to 3, this empty point value changed

enter image description here

Can anyone suggest a solution?

1

1 Answers

2
votes

For your case, moving average is like this:

     A     B     C     D
----+-----------------------
1   |x     y     MA(2) MA(3)
2   |1     1 
3   |2     5     3  
4   |3     17    11    7.67
5   |4           17    11
6   |5     4     4     10.5

It has nothing to do with an empty point (more precisely, missing data). MA with interval 2 is calculated based on (ie, taking average of) current and a previous value. So C3 is =AVERAGE(B2:B3), C4 is =AVERAGE(B3:B4), and so on.

Likewise MA with interval 3 is calculated based on current and previous two values. D4 is =AVERAGE(B2:B4), D5 is =AVERAGE(B3:B5), and D6 is =AVERAGE(B4:B6). You can see that those MA values are exact the same in the plot.

This is called simple moving average. You'd better read this article for more gentle explanation.