Smoothing

 

I.  Moving average:

On menu:

Stat>Time Series>Moving Average

 

Variable – column holding the series

MA length – number of periods to be averaged

 

“Generate forecasts” -  check this and enter

Number of forecasts – 1

Starting from origin – [fill in number of last observation – if you have 20 items, enter 20, if 15 data points, enter 15)

 

*To see the “forecasts” for the past data (Minitab will call these values “fits”)
Click “Storage”

Select “moving averages”   and “Fits(one-period-ahead-forecasts)”

 

Result (in Session window) gives:

Moving average

Length  [tells unumber of periods)

Accuracy measures – We are interested in MSD (text calls it MSE)

Forecast – period (should be next period after data) & forecast. [Don’t worry about upper & lower – that’s an interval estimate we shall not discuss]

 

*If you chose to store Fits and Averages – these will appear in columns of the data window – averages in “AVER1” (beside the last period included in the average) and prediction in  “FITS1”.  If you do several series calculations, you’ll get “AVER2”FITS2” “AVER3”FITS3”  etc.

 

 

II. Exponential Smoothing:

On menu

Stat>Time Series> Single Exp Smoothing

 

Variable – column holding the series

MA length – number of periods to be averaged

 

“Generate forecasts” -  check this and enter

Number of forecasts – 1

Starting from origin – [fill in number of last observation – if you have 20 items, enter 20, if 15 data points, enter 15)

 

Click “Options”

“Use average of first K observations, K = “ enter 1

*To see the “forecasts” for the past data (Minitab will call these values “fits”)
Click “Storage”

Select “Smoothed Data” “Fits(one-period-ahead-forecasts)” and

 

Result (in Session window) gives:

Data – column name

Length – (number of data points)

Smoothing Constant Alpha

 

Accuracy measures – We are interested in MSD (text calls it MSE)

Forecast – period (should be next period after data) & forecast. [Don’t worry about upper & lower – that’s an interval estimate we shall not discuss]

 

*If you chose to store Smoothed data and  Fits – these will appear in columns of the data window – averages in “SMOO1” (beside the period used to calculate) and prediction in  “FITS1”.  If you do several series calculations, you’ll get “SMOO2”FITS2” “SMOO”FITS3”  etc.