Increasing the Number of Periods in a Moving Average Will

question 55

Multiple Choice

Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of

• A) manager understanding
• B) accuracy
• C) stability
• D) responsiveness to changes
• E) All of the above are diminished when the number of periods increases.

---

Definitions:

Many Buyers

A market condition characterized by the presence of numerous consumers or purchasers for goods and services.

Many Sellers

A characteristic of competitive markets where a large number of sellers offer similar or identical products, preventing any single seller from influencing market prices.

Distinguish

To recognize or treat someone or something as different from others.

Marginal Cost

The increase in total production costs resulting from the production of one additional unit of a product or service.