Mathematics · Time Series Analysis and Forecasting
Which of the following statements is NOT correct about the moving average forecasting method?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A moving average of order k is the mean value of k consecutive observations.
- 2The most recent moving average value provides a forecast for the next period.
- 3As each new observation becomes available, a new mean is computed by adding the newest value and dropping the oldest value.
- 4The number of data points in each average changes as time passes.✓
Correct answer
The number of data points in each average changes as time passes.
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