Question: When considering using the moving average approach, what can be said about how many periods back to average? as the number of periods back for
When considering using the moving average approach, what can be said about
how many periods back to average?
as the number of periods back for which the data is averaged, the smoother the forecast
line becomes
the more periods back the data is averaged, the more responsive the forecast line
As the data is moved forward in time, the moving average is less informative
The further back in historical data, the more weight is applied in the MA
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
