Using a large value for order k in the moving averages method is effective in
a. tracking changes in a time series more quickly.
b. smoothing out random fluctuations.
c. providing a forecast when only the most recent time series are relevant.
d. eliminating the effect of seasonal variations in the time series.
b
RATIONALE: A moving average will adapt to the new level of the series and continue to provide good forecasts in k periods. Thus a smaller value of k will track shifts in a time series more quickly. On the other hand, larger values of k will be more effective in smoothing out random fluctuations.
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