Which of the following statements is the objective of the moving averages and exponential smoothing methods?
A)To maximize forecast accuracy measures
B)To smooth out random fluctuations in the time series
C)To characterize the variable fluctuations by an exponential equation
D)To transform a nonstationary time series into a stationary series

Question

Quizplus · Accepted Answer

The objective of moving averages and exponential smoothing methods is to smooth out random fluctuations in the time series. This allows for a clearer picture of the underlying trends and patterns in the data, which can improve the accuracy of forecasts. The other answer choices do not accurately describe the objective of these methods.

Which of the Following Statements Is the Objective of the Moving