Chapter 52. Using Moving Averages to Understand Time Series

  • I’m trying to analyze the upward trend in quarterly revenues of Amazon.com since 1996. Fourth quarter sales in the U.S. are usually larger (because of Christmas) than sales during the first quarter of the following year. This pattern obscures the upward trend in sales. Is there any way that I can graphically show the upward trend in revenues?

Time series data simply displays the same quantity measured at different points in time. For example, the Data and Chart worksheet in the file Amazon.xlsx, shown in Figure 52-1 on the next page, displays the time series for quarterly revenues in millions of dollars for Amazon.com. Our data covers the time interval from the first quarter of 1996 ...

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