In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends.

Question

Quizplus · Accepted Answer

This is because a shorter time span means that the moving average is more responsive to recent changes in the data, including volatile trends. Conversely, a longer time span would result in a smoother average that is less affected by short-term fluctuations.

In a Forecasting Model Using Simple Moving Average, the Shorter