When do we use the average range instead of the average moving range?

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SUMMARY

The discussion focuses on the application of average range versus average moving range in statistical analysis. It clarifies that the sample range, defined as the maximum value minus the minimum value, can be utilized alongside the average moving range, which is calculated by summing the differences between preceding values and current values divided by the number of moving ranges. The equations provided, including =̿+2̅ and =̿−2, are essential for understanding the calculations involved. The participants seek clarity on whether R represents average moving ranges, sample range, or both.

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  • Familiarity with the equations for calculating average range and average moving range
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Homework Statement





Homework Equations



=̿+2̅, =̿−2

=4̅, =3̅

The Attempt at a Solution



From what I gather, we can use the sample range, which is the max minus the min, or the average moving range which is the sum of the preceding value minus the current value divided by the number of moving ranges.

For the equations mentioned above, can we use anyone of them or can we just use the average of moving ranges?

What does R stand for, average moving ranges or sample range or both?
 
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