Increasing the Number of Periods in a Moving Average Will

question 55

Multiple Choice

Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of

• A) manager understanding
• B) accuracy
• C) stability
• D) responsiveness to changes
• E) All of the above are diminished when the number of periods increases.

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Definitions:

Comparative Negligence

A principle of tort law that compares the negligence of the conflicting parties and apportions damages accordingly.

Res Ipsa Loquitur

A Latin term that means "the thing speaks for itself," used in tort law to refer to cases where the negligence is inferred from the nature of the accident.

Actual Cause

The true reason an event occurred, which directly led to the damage or injury, forming a basis for establishing legal liability.

Res Ipsa Loquitur

A legal doctrine that allows the presumption of negligence by proving that the type of accident would not occur without someone's negligence.