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How to improve prediction using 18-point moving average?

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    12-14-2012
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    Excel 2010
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    How to improve prediction using 18-point moving average?

    Hi Forum,

    Could anybody help me on this?

    I have a monthly data series for the past 35 months (pl see attached book1.xls).

    Based on this, my boss asked me to predict the expenditure for the next 25 months.

    I have used a simple 18-point moving average method to do these predictions.

    Question.
    As is seen in the chart (pl see attached book1.xls), there is a big jump in the initial month of predicted data, otherwise the predicted series looks not too bad.

    How could I get rid of this jump (or is there a better alternative method to do the prediction with precision?)

    Appreciate your help
    Mirisage
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