Increasing the number of periods in a simple moving average forecast causes the forecasting technique to be less responsive to changes in the historical data.

Question

Quizplus · Accepted Answer

Increasing the number of periods in a simple moving average forecast smooths out short-term fluctuations more effectively, but it also makes the forecast less sensitive to recent changes in the data, as it averages over a longer time period.

Increasing the Number of Periods in a Simple Moving Average