Smoothing time series data by the moving average method or exponential smoothing method is an attempt to remove the effect of the:
A)trend component
B)cyclical component
C)seasonal component
D)random variation component

Question

Quizplus · Accepted Answer

Smoothing time series data, whether by moving average or exponential smoothing methods, is primarily aimed at reducing the impact of the random variation component. These techniques help in filtering out the noise to better identify the underlying pattern in the data.

Smoothing Time Series Data by the Moving Average Method or Exponential