What is floating average in SAP IS-B - SAP for Banking?

SAP Term: floating average

• Component: IS-B

• Component Name: SAP for Banking

• Description: Bank Components Mathematical function that derives a new data series from an existing one, in which for each value Np for position p of the existing data series, the arithmetic mean of value N p - n, p - n + 1, ... , p is formed and entered as a value of the new data series. The floating average is used as a smoothing function, with which bigger swings in the values of a sample can be evened out. In time series for example, stock exchange prices it serves to indicate trends.

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• Key Concepts: 
  Floating average is a method used in the IS-B SAP for Banking component to calculate the average of a set of values over a period of time. It is used to determine the average value of a set of values that are constantly changing. 
  
  How to use it: 
  Floating average is used to calculate the average of a set of values over a period of time. It takes into account the changes in the values over time and calculates the average accordingly. To use it, you need to specify the period of time for which you want to calculate the average and then enter the values for that period. The floating average will then be calculated based on these values. 
  
  Tips & Tricks: 
  When using floating average, it is important to ensure that you are entering accurate values for the period of time you are calculating the average for. This will ensure that the calculated average is accurate and reliable. Additionally, it is important to consider any changes in the values over time when calculating the floating average. 
  
  Related Information: 
  Floating average is similar to other methods used to calculate averages such as simple moving averages and weighted moving averages. However, it differs in that it takes into account changes in the values over time when calculating the average. Additionally, it can be used in conjunction with other methods such as exponential smoothing to further refine the accuracy of the calculated average.