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The Larger the Number of Periods in the Simple Moving

question 61

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The larger the number of periods in the simple moving average forecasting method, the greater the method's responsiveness to changes in demand.


Definitions:

Standard Error

A measure of the statistical accuracy of an estimate, calculated from the standard deviation of a sampling distribution.

Sample Size

The number of observations or replicates included in a statistical sample, crucial for the reliability and accuracy of the study or experiment.

Infinite Population

An idealized concept of a population so large that its size is not diminished by the sampling process.

Standard Deviation

An estimator for the amount of disparity or spread found in a set of numerical values.

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