Question

Which is not a characteristic of simple moving averages applied to time series data?

a)weights each historical value equally
b)requires only the last period's forecast and actual data
c)smoothes real variations in the data
d)smoothes random variations in the data

Answer 1

The characteristic that is not a characteristic of simple moving averages applied to time series data is requires only the last period's forecast and actual data.

Step-by-step explanation:

The characteristic that is not a characteristic of simple moving averages applied to time series data is b)requires only the last period's forecast and actual data. The characteristic that is not a characteristic of simple moving averages applied to time series data is requires only the last period's forecast and actual data.

Simple moving averages require a specified time period and calculate the average of that period's data. They weight each historical value equally, which means that all values receive the same importance. Simple moving averages also smooth real variations in the data by reducing the impact of outliers and random fluctuations, but they do not specifically smooth random variations in the data.