As the number of periods used in a moving average forecast increases, the lag between forecast and actual
A) increases
B) decreases
C) stays the same
D) may increase or decrease depending on the data
E) none of the above

Question

Quizplus · Accepted Answer

Increasing the number of periods in a moving average forecast smooths out the data more, which can result in a greater lag between the forecast and actual values because it takes longer for the forecast to respond to recent changes.

As the Number of Periods Used in a Moving Average