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:

Interest Payment

The amount paid by a borrower to a lender as compensation for the use of borrowed money.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Current Assets

Assets that are expected to be converted into cash, sold, or used up within one year or within the operating cycle, whichever is longer.

Current Liabilities

Current liabilities are financial obligations that a company expects to pay within one year, such as accounts payable, short-term loans, and taxes owed.