Answer Posted / james bond
Not sure if outlier group exist in APO.....
Outlier: Lets say you have planned your expenses @ 500 $ per
month. However due to festivities you see sudden spike in
your expenses in the month of Oct, Nov and Dec (say by 400
). Your annual forecast was 6000 but due to recent 3 month
activity actual is 7200. These spikes are called outlier.
Smoothing: When you account for these changes over a period
of time (even distribution). In this case it would be 600
per month instead of 500 till Sept and 900 for Oct, Nov & Dec.
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