Which of the followings is not a shortcoming of the moving average method? It do
ID: 2412649 • Letter: W
Question
Which of the followings is not a shortcoming of the moving average method?
It does not allow for placing a higher weight on the most recent data point in the forecast.
It requires a longer time series dataset to arrive the forecast value.
It is simple and easy to use.
None of the multiple choices is correct
A.It does not allow for placing a higher weight on the most recent data point in the forecast.
B.It requires a longer time series dataset to arrive the forecast value.
C.It is simple and easy to use.
D.None of the multiple choices is correct
Explanation / Answer
Moving average is a method to find average value of a given data set.
It is a tool that analyst frequently use to establish a trend in a security and to follow market trend.
It is simple and easy to calculate, so it is a advantage of moving average.
So correct answer is C.
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