I the Moving Average Method Merely Smooths Out the flUctuations

question 56

Multiple Choice

i. The moving average method merely smooths out the fluctuations in the data.
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) (i), (ii), and (iii) are all false statements.

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