Question $17$

When calculating a simple moving average forecast, the number of time periods $($K$)$ selected by the manager has what effect?

A small value for $K$ makes the forecast less reactive to extreme values in recent periods

A large value for $K$ makes the forecast more reactive to extreme values in recent periods

A small value for $K$ makes the forecast more accurate and is the preferred method

A large value for $K$ makes the forecast less reactive to extreme values in recent periods