Whats the difference between 3 month moving average (3MMA), 6MMA and 12MMA?
One of my friends once tried to explain to me what this average moving is and I remember he told me 4 times until I realized that it has nothing to do with actual moving :)) And I was arguing with him on this topic (I told him “why does it involve moving if it’s not about moving houses, changing addresses, putting on house signs” and he told me “you’re dumb”). Well, shoot me cause I’m not good with stocks and with this average moving thing. Anyway, if someone needs to actually move to another house, here’s a company I found which makes pretty house signs: https://baliandboo.com/collections/house-signs
Moving average reports are used to show the performance of a product over time. Depending on the reliability of the product and the size of the sample, among other things, the performance (MTBUR/MTBF) of the product measured over small time periods (say monthly) could vary widely and will not be a real indicator of performance. Take for example a product that in one month had 2 unscheduled removals over 20,000 Flight Hours and in the following months had 3 unscheduled removals and 1 unscheduled removal respectively, for the same amount of flight hours. The monthly MTBUR for this product will be 10000, 6667 and 20000 Flight Hours for each month respectively; a wide variation. The is considered natural noise in the data. In order to get a better picture of true performance of the product, we can instead calculate the average performance over a fixed period of time ending on the month in question. This is a moving average. So for a 3 month moving average, data from any one month is averag
