What is the primary purpose of the rolling average function?

The primary purpose of the rolling average function is to smooth out differences and highlight trends in a dataset over a specified period. By averaging a set number of consecutive data points, it reduces the impact of volatility, allowing for clearer visibility of underlying trends in the data. This is particularly useful in situations such as demand forecasting, where fluctuations in data points can create noise that obscures the true growth or decline of demand over time.

As the rolling average aggregates data points, it helps in recognizing long-term trends and seasonal variations, making it easier for analysts and decision-makers to interpret the underlying patterns without being misled by short-term fluctuations or anomalies. This capability is essential for informed decision-making in business and strategic planning.