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Which of the following statements about moving averages is not true?

A. It can be used to smooth a series.

B. It gives equal weight to all values in the computation.

C. It is simpler than the method of exponential smoothing.

D. It gives greater weight to more recent data

Answers (1)
  1. 4 August, 12:14
    The answer is "Option D"


    The term moving average is known as a time series of information, which is widely used to reduce quick-term variations and demonstrate deep-term patterns or intervals. It is a type of matrices numerically, thus it could be considered as either an example of a tiny-pass filter for data processing, and correct options can be described as follows:

    In option A, It is used in a smooth series. In option B, In this process, all the values are used in the calculation are equal in weight. In option C, It is the simplest method, which is used in exponential smoothing.
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