I might add that the dynamic ratings calculated each "evening" by our [collectively] USTA computer; aka 'Algy', also takes into account each member's last two matches, when available. Effectively averaging an available three matches whilst generating the member's new dynamic rating. This deals to some reasonable degree with anomalies.
Our area league hosted an evening with one of the gentleman at USTA that was instrumental in the development of the algorithm and the processes involved in the computer rating system and is actively managing the system currently.
He spoke very freely about the system and how it works while stopping short of revealing > the algorithm <.
Schmke is pretty much spot on about how this all works, and while many of us are curious about the algorithm and its inner workings, that information will not be shared in any detailed way.