I am describing a trend in monthly Immunization totals to hospital
management. Immunizations are up 17% over last year's total at this time.
However, a simple linear trendline points downward because of seasonal work
patterns - very high in the beginning, then lower, then gradually bending
upward in the last several months. A moving average "trend" merely
approximates this year's work pattern - so, why display it at all? Yet, if I
were to choose to display a trendline, a moving average approximates the
actual peformance of this department. Is it useful to include a trendline in
this situation? (In a similar vein, I use a moving average to trend
physician's monthly peformance, but the overall reaction has been "so what?").
Mike Middleton - 28 Sep 2007 19:34 GMT
Douglas Eckert -
If you have enough data, one approach is to model the trend (long-run
average behavior) and seasonal components separately and then combine them
for forecasts. For an example workbook, see
http://www.mikemiddleton.com/LinearTrendSeasonalForecast.xls
- Mike Middleton
http://www.DecisionToolworks.com
Decision Analysis Add-ins for Excel
>I am describing a trend in monthly Immunization totals to hospital
> management. Immunizations are up 17% over last year's total at this time.
[quoted text clipped - 10 lines]
> physician's monthly peformance, but the overall reaction has been "so
> what?").
Douglas Eckert - 28 Sep 2007 20:03 GMT
Thanks a lot, Mike!
DOUG
> Douglas Eckert -
>
[quoted text clipped - 21 lines]
> > physician's monthly peformance, but the overall reaction has been "so
> > what?").