I the Moving Average Method Merely Smooths Out the Fluctuations

question 24

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. 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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