Which of the following statements about moving averages is not true?

A. It can be used to smooth a series.
B. It gives equal weight to all values in the computation.
C. It is simpler than the method of exponential smoothing.
D. It gives greater weight to more recent data

Respuesta :

Answer:

The answer is "Option D"

Explanation:

The term moving average is known as a time series of information, which is widely used to reduce quick-term variations and demonstrate deep-term patterns or intervals. It is a type of matrices numerically, thus it could be considered as either an example of a tiny-pass filter for data processing, and correct options can be described as follows:

  • In option A,  It is used in a smooth series.
  • In option B, In this process, all the values are used in the calculation are equal in weight.
  • In option C, It is the simplest method, which is used in exponential smoothing.

In statistics moving average is a rolling average that is a calculation to analyze data. It creates a series of averages in different subsets. It is also called a moving mean.

  • The moving average is used in time series and data can be shown for short-term fluctuations.
  • It can also be used to highlight long-term trends It gives greater weight to more recent data.

Hence the option D is correct.

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