Asked by Richard Sullivan on Jun 24, 2024

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Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of

A) manager understanding.
B) accuracy.
C) stability.
D) responsiveness to changes.
E) reliability.

Responsiveness

Refers to the ability of a business or system to quickly react to changes or demands in the environment.

Greater Smoothing

A technique used in data analysis and time series forecasting to reduce volatility or noise in data points.

Moving Average

A technique in statistics that involves calculating averages from various subsets within the whole data set for analysis purposes.

  • Perceive the qualities and usage of time-series analysis in the sphere of forecasting.
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sibusiso ndeluJun 24, 2024
Final Answer :
D
Explanation :
Increasing the number of periods in a moving average will result in greater smoothing of data, but it will be less responsive to changes, which means a decrease in accuracy and reliability to predict future values. The stability and manager understanding will not be affected by this change.