Moving average forecasting techniques:
A)immediately reflect changing patterns in the time series.
B)lead changes in the time series.
C)smooth variations in the time series.
D)exhibit more variability than the original data.
E)are best used when demand shows a steady increase.

Question

Quizplus · Accepted Answer

Moving average forecasting techniques smooth out variations in the time series and are often used to identify trends or patterns in the data. They do not immediately reflect changing patterns, nor do they lead changes in the time series. In fact, because they average out fluctuations over time, they tend to exhibit less variability than the original data. While moving averages can be useful for a variety of demand patterns, they are not necessarily better suited to steady increases or any other specific pattern.

Moving Average Forecasting Techniques