Here is the challenge:
- Say I have 10 rows of data
- I want to take a 2 period moving average to forecast future periods, say I want to forecast 4 periods in future
- The forecast for 11th period will be average of the 9th and 10th data point, up until here too it is straight forward I guess
- Now if I want to forecast the 12 period, it has to be the average of 10th data point and the forecasted values of the 11th period
- For 12th , it has to be the average of forecasts of 11th and 12th periods. . . . so on and so forth.
This is just an example, I want to scale these up to 4, 8, 12 period moving average to forecast for 12 periods in the future.
Excel attached gives a nice perspective (values highlighted in red: look for formulas in the cells)
Any ideas on how we can accomplish this?