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Question

Moving-averages:


A
Give the trend in a straight line
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B
Measure the seasonal variations
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C
Smooth-out the time series
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D
None of them
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Solution

The correct option is C Smooth-out the time series
$$\Rightarrow$$  Moving-averages : $$Smooth-out\,the\,time\,series$$.
$$\Rightarrow$$  A moving average  is a widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random price fluctuations.
$$\Rightarrow$$  It is a trend-following, or lagging, indicator because it is based on past prices.


Maths

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