Which of the following statements is the objective of the moving averages and ex
ID: 3220188 • Letter: W
Question
Which of the following statements is the objective of the moving averages and exponential smoothing methods?
To smooth out random fluctuations in the time series
To characterize the variable fluctuations by a smooth curve
To characterize the variable fluctuations by an exponential equation
To transform a nonstationary time series into a stationary series
a.To smooth out random fluctuations in the time series
b.To characterize the variable fluctuations by a smooth curve
c.To characterize the variable fluctuations by an exponential equation
d.To transform a nonstationary time series into a stationary series
Explanation / Answer
Answer is a.
The objective of Moving average and exponentially smoothing is to smooth out random fluctuations in the time series
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