In the method of moving averages, the smoothness of the trend curve obtained is mainly decided by
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → the order (period) of the moving average
A moving average replaces each value by the mean of a group of consecutive values, which removes the short-term ups and downs. The order (period) of the moving average, that is, how many values are averaged each time, decides how smooth the trend curve is.
This is why the choice of an appropriate length of the moving average is very important in this method.