As the number of periods used in a moving average forecast increases, the forecast becomes
A) more sensitive
B) more responsive
C) more aggressive
D) less responsive
E) B and C

Question

Quizplus · Accepted Answer

As the number of periods increases in a moving average forecast, the forecast becomes less responsive to changes because it averages more data points, thus smoothing out fluctuations more effectively.

As the Number of Periods Used in a Moving Average