How can you describe the moving average method?
A) A method that smoothes out a time series.
B) A method to deseasonalize a time series.
C) A technique that results in a trend line equation.
D) A method for computing the slope of a trend line.

Question

Quizplus · Accepted Answer

The moving average method is a technique used to smooth out a time series by averaging out the fluctuations in the data over a specific period of time. It is commonly used to identify trends or patterns in data that may not be immediately apparent due to short-term fluctuations or random noise in the data. It is not used to deseasonalize a time series or compute the slope of a trend line, although it may indirectly help identify these trends in the data.

How Can You Describe the Moving Average Method