All other things remaining the same, as the number of periods used in the moving average forecast increases, the forecast values will tend to have
A) smaller variation from each other
B) larger variation from each other
C) about the same variation from each other
D) variation dependent on the raw data
E) sometimes larger and sometimes smaller variation

Question

Quizplus · Accepted Answer

As the number of periods used in the moving average forecast increases, the forecast values tend to smooth out because they average over a larger number of past data points. This results in smaller variations from one forecast value to the next.

All Other Things Remaining the Same, as the Number of Periods