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Comparing daily numbers versus moving average

Yesterday I was going to write a little bit about a certain type of graph but I was tired and it was getting late. What I want to talk about is how moving average compares against the daily reporting of numbers. This particular graph struck me as a particular good example of how moving averages can smooth out the jagged ups and downs of daily reporting.

Left hand side: Daily numbers Right hand side: 7 day moving average

Notice how the left hand side is very jagged with extreme peaks and valleys. Brazil is represented by the bright blue line and apparently their reporting may not be so consistent because of the way the numbers drops on some days – I find the drops occur on Sunday and Monday, probably representing the day before, or the weekend days – and then rise on others.

The graph on the right utilizes 7 day moving averages to smooth out those dips and rises by covering those weekend days in the averages.

These graphs really show clearly why one would want to use moving averages.

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