As one increases the number of periods used in the calculation of a moving average,a.greater emphasis is placed on more recent data.b.less emphasis is placed on more recent data.c.the emphasis placed on more recent data remains the same.d.it requires a computer to automate the calculations.e.one is usually looking for a long-term prediction.
As one increases the
number of periods used in the calculation of a moving average, less
emphasis is placed on more recent data. Therefore the answer is letter B. This
is because moving average is derived from successive segments of a series of
values. As the number of periods increase, the effect of recent data gets less
significant.
