Question

The method of moving average is used to find the:

• A. Secular trend
• B. Seasonal variation
• C. Cyclical variation
• D. Irregular variation

Answer 1

The correct option is A Secular trend

$\Rightarrow$ The method of moving average is used to find the : $Seculartrend.$

$\Rightarrow$ A moving average is an average (Arithmetic mean) of fixed number of items (known as periods) which moves through a series by dropping the first item of the previously averaged group and adding the next item in each successive average.

$\Rightarrow$ The value so computed is considered the trend value for the unit of time falling at the center of the period used in the calculation of the average.