Which of the Following Statements About Moving Averages Is Not

question 52

Multiple Choice

Which of the following statements about moving averages is not true?

• A) It can be used to smooth a series.
• B) It gives equal weight to all values in the computation.
• C) It is simpler than the method of exponential smoothing.
• D) It gives greater weight to more recent data.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Initial Investment

The amount of capital put into a project or business at the beginning, often used in capital budgeting to analyze potential returns.

Life Of Equipment

The estimated duration for which equipment can be expected to operate effectively and be used productively by a business.

Annual Cash Inflow

The total amount of money received by a company over a year, from operations, investments, and financing activities.