The simple moving average is _______.
A) Able to respond to changes quickly
B) Difficult to calculate for small values of n
C) Not able to respond to changes quickly
D) Insensitive to stable demand

Question

Quizplus · Accepted Answer

The simple moving average is not able to respond to changes quickly, as it gives equal weight to all observations in the time series. It is better suited for smoothing out fluctuations in stable demand. It is not difficult to calculate for small values of n, as it simply takes the mean of the last n observations.

The Simple Moving Average Is _______