With appropriate selection of weights, the weighted moving average forecasting technique is?
A) More responsive to changes in the data than the simple moving average
B) Less responsive to changes in the data than the simple moving average
C) Neither more nor less responsive to changes in the data than the simple moving average
D) Cannot be compared to the simple moving average

Question

Quizplus · Accepted Answer

With appropriate selection of weights, the weighted moving average forecasting technique can give more weight to recent data points and be more responsive to changes in the data than the simple moving average, which treats all data points equally.

With Appropriate Selection of Weights, the Weighted Moving Average Forecasting