AI engineering glossary · Time series recsys

What is moving average model?

Moving average model (also called MA model, MA(q)): A model that predicts the current value from a constant plus the current and q previous random shocks, each with a weight. Not to be confused with smoothing by averaging. Formula for MA(1): y_t = c + e_t + theta * e_(t-1).

Level: advancedTopic: Time series recsys

Moving average model: an example

With theta = 0.5, yesterday's surprise of +4 raises today's value by 2.

Related terms

More Time series recsys terms

Where you learn it

Moving average model is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.

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