Which of the following is a drawback of the Moving Average (MA) method of forecasting?Group of answer choicesIt requires extensive historical records.Increasing the number of periods makes it less sensitive to data change.It does not pick up trends very well.All of the above.Next

Moving average method is Good for Long-term forecasting.*TrueFalse

Relative to a simple moving average, the advantage of a weighted moving average is that the forecast can be more reflective of the most recent observations in a time series.Multiple ChoiceFalseTrue

The forecast method which considers the error in forecasting of recent data- Simple average method Moving average method Weighted moving average method Exponential smoothing method (Correct)

Which of the following statements about moving averages is not true? (a) It gives greater weight to more recent data (b) It is simpler than the method of exponential smoothing (c) It can be used to smooth a series (d) It gives equal weight to all values in the computation

State the conditions under which the Moving Average method can be recommended for trend analysis. How will you determine the period of the moving average?