I the Moving Average Method Averages Out Cyclical (C) and Irregular

question 3

Multiple Choice

i. The moving average method averages out cyclical (C) and irregular (I) components.
ii. To apply the moving average method to a time series, the data should follow a linear trend and have a definite rhythmic pattern of fluctuations that repeat (say, every three years) .
iii. Sales, production and other economic and business series usually have periods of oscillation that are of equal length or identical amplitudes.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false

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