I the Moving Average Method Merely Smooths Out the flUctuations

question 37

Multiple Choice

i. The moving average method merely smooths out the fluctuations in the data.
ii. The moving average method averages out cyclical (C) and irregular (I) components.
iii. 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) .

• 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) (i), (ii), and (iii) are all false statements.