When using a simple moving average to forecast demand, the responsiveness will be increased:
A) As more periods are added to the average
B) As weights for most recent demands are increased
C) As fewer periods are used in the average
D) As weights for past demands are increased

Question

Quizplus · Accepted Answer

The responsiveness of a simple moving average to forecast demand increases as fewer periods are used in the average. This is because using fewer periods makes the average more sensitive to recent changes in demand.

When Using a Simple Moving Average to Forecast Demand, the Responsiveness