Which of the following statements concerning moving average forecasts is true? l
ID: 387878 • Letter: W
Question
Which of the following statements concerning moving average forecasts is true?
longer-period moving averages react more slowly to recent demand changes than shorter-period moving averages
longer-period moving averages react faster to recent demand changes than shorter-period moving averages
shorter-period moving averages are less susceptible to simple random variations
moving averages react quickly to seasonal patterns
longer-period moving averages react more slowly to recent demand changes than shorter-period moving averages
longer-period moving averages react faster to recent demand changes than shorter-period moving averages
shorter-period moving averages are less susceptible to simple random variations
moving averages react quickly to seasonal patterns
Explanation / Answer
Longer-period moving averages react more slowly to recent demand changes than shorter-period moving averages is the statement concerning moving average forecasts which is true. Remaining statements are false regarding moving average forecasts.