The purpose behind moving averages and centered moving averages is to eliminate __________________.
A)Constant variation
B)Cyclical variation
C)Seasonal variation
D)Regular variation

Question

Quizplus · Accepted Answer

Moving averages and centered moving averages are commonly used in time series analysis to eliminate seasonal variation. Seasonal variation refers to the regular pattern of changes that occur at fixed intervals within a year. By using moving averages or centered moving averages, these seasonal fluctuations can be smoothed out, making it easier to identify trends and other patterns in the data. Constant variation, cyclical variation, and regular variation can also be addressed using various statistical techniques, but moving averages are specifically designed to handle seasonal variation.

The Purpose Behind Moving Averages and Centered Moving Averages Is