Question

in a moving average forecast, as the value of k increases , the forecast reacts slowly to recent changes in the time series. as the value of k select, the forecast reacts more quickly. select options: increases, stabilizes, stays the same, decreases

Explanation:

In moving average forecasting, \( k \) represents the number of periods used to calculate the average. A smaller \( k \) means fewer periods are averaged, so the forecast is more responsive to recent changes (reacts quickly). A larger \( k \) averages more periods, making the forecast slower to react to recent changes. So when \( k \) decreases, the forecast reacts more quickly.

Answer:

decreases