A moving average forecast is more responsive to changes in the historical demand when a higher value of n is used-i.e. ,when more demand periods are used in computing the forecast.

Question

Quizplus · Accepted Answer

A moving average forecast becomes less responsive to changes in historical demand as a higher value of n (number of demand periods used in the computation) is used, because it averages over a larger number of periods, thus smoothing out fluctuations more effectively.

A Moving Average Forecast Is More Responsive to Changes in the Historical