Which is not a characteristic of simple moving averages applied to time series data?
A)Smooths random variations in the data
B)Weights each historical value equally
C)Lags changes in the data
D)Has minimal reliance on historical data
E)Smooths real variations in the data

Question

Quizplus · Accepted Answer

Simple moving averages rely heavily on historical data, as each value in the average is equally weighted with previous values. Therefore, choice D is not a characteristic of simple moving averages. The other choices are all characteristics of simple moving averages.

Which Is Not a Characteristic of Simple Moving Averages Applied