A moving average model works best when _____ in the time series.
A) only irregular variation is present
B) only a trend is present
C) there is no trend, seasonal, or cyclical pattern
D) trend, seasonal, and cyclical patterns exist

Question

Quizplus · Accepted Answer

A moving average model is ideal for smoothing out fluctuations in data, and it works best when there is no underlying trend, seasonal, or cyclical pattern to the time series. If any of these patterns are present in the data, then a more complex forecasting model, such as a seasonal ARIMA or exponential smoothing, may be more appropriate.

A Moving Average Model Works Best When _____ in the Time