If responsiveness to recent data is important to the forecaster, then the number of periods used in a moving average forecast
A) should be small
B) should be large
C) should be medium
D) should be either small or large but not medium
E) could be anything

Question

Quizplus · Accepted Answer

A smaller number of periods in a moving average forecast allows the model to be more responsive to recent data changes, as it reduces the lag effect of older data.

If Responsiveness to Recent Data Is Important to the Forecaster