Moving Averages and the iPad

There are myriad other ways to smooth a graph without switching to cumulative figures. One of the simplest is the moving average. In this technique, instead of plotting the raw data, you plot the average of a few data points in the neighborhood of each time value.

For many data sets, the best size of this neighborhood is not obvious. With Apple’s sales figures, though, I think it’s clear that the best choice is to average over four quarters: the quarter that you’re plotting and the three previous. This smooths over the seasonal jumpiness while not including so much past data as to ignore real trends.

→ Lean Crew