Practical Predictive Analytics

Verifying the SMA calculation

It is always important to be able to verify calculation, to ensure that the values have been performed correctly, and to promote understanding.

In the case of the SMA function, we can switch to the console, and calculate the value of the SMA function for the last five data points.

First, we calculate the sum of the elements and then divide by the number of data points in the moving average (5):

sum(x[10:14])/5 > [1] 0.1373023 

That matches exactly with the column given for the SMA for time period 14.