As the number of periods in the forecast, k, increases
A) the moving average prediction will be smoother.
B) it is harder to get a good forecast.
C) the forecast will respond more quickly to changes in the data.
D) the moving average will increase in value.

Question

Quizplus · Accepted Answer

When the number of periods in the forecast (k) increases, the moving average prediction becomes smoother because it averages over a larger number of past data points, reducing the impact of short-term fluctuations.

As the Number of Periods in the Forecast, K, Increases