As one increases the number of periods used in the calculation of a moving average,
A)greater emphasis is placed on more recent data.
B)less emphasis is placed on more recent data.
C)the emphasis placed on more recent data remains the same.
D)it requires a computer to automate the calculations.
E)one is usually looking for a long-term prediction.

Question

Quizplus · Accepted Answer

As the number of periods in a moving average increases, each individual data point, including more recent ones, has less impact on the average, thus placing less emphasis on recent data.

As One Increases the Number of Periods Used in the Calculation