I the Moving Average Method Merely Smooths Out the Fluctuations

question 59

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.