Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of
A) manager understanding.
B) accuracy.
C) stability.
D) responsiveness to changes.
E) reliability.

Question

Quizplus · Accepted Answer

Increasing the number of periods in a moving average will result in greater smoothing of data, but it will be less responsive to changes, which means a decrease in accuracy and reliability to predict future values. The stability and manager understanding will not be affected by this change.

Increasing the Number of Periods in a Moving Average Will