Moving Average Algorithm Quiz and Answers:Crash Course in Forecasting
Published in
2 min readMar 31, 2023
- What is the Moving Average algorithm used for?
A. To smooth out time series data
B. To predict future values in time series data
C. Both A and B
Answer: C - What is the purpose of the window size in the Moving Average algorithm?
A. To determine the number of data points used to calculate the Moving Average
B. To determine the number of future values to predict
C. To determine the accuracy of the Moving Average
Answer: A - How does increasing the window size affect the Moving Average?
A. It makes the Moving Average more accurate
B. It makes the Moving Average less accurate
C. It does not affect the accuracy of the Moving Average
Answer: A - What is the difference between a Simple Moving Average and an Exponential Moving Average?
A. A Simple Moving Average uses a fixed window size, while an Exponential Moving Average uses a variable window size
B. A Simple Moving Average gives equal weight to all data points, while an Exponential Moving Average gives more weight to recent data points C. A Simple Moving Average and an Exponential Moving Average are the same algorithm
Answer: B - How does the Moving Average algorithm handle missing data?
A. It replaces missing data with the Moving Average of nearby data points
B. It ignores missing data and calculates the Moving Average based on available data points
C. It stops calculating the Moving Average if missing data is encountered
Answer: B - What is the purpose of applying the Moving Average algorithm to financial data?
A. To identify trends and patterns in the data
B. To make predictions about future stock prices
C. Both A and B
Answer: C - How can the Moving Average algorithm be used in image processing?
A. To blur or sharpen images
B. To remove noise from images
C. To enhance edges in images
Answer: B - What is the main disadvantage of using the Moving Average algorithm? A. It requires a lot of computational power
B. It can produce inaccurate predictions for volatile data
C. It is only suitable for small datasets
Answer: B - Which of the following is an example of a weighted Moving Average?
A. Simple Moving Average
B. Exponential Moving Average
C. Moving Median
Answer: B - How does the Moving Average algorithm differ from other time series forecasting methods, such as ARIMA or Prophet?
A. Moving Average is a simpler algorithm that is easier to implement
B. ARIMA and Prophet are more accurate than Moving Average
C. Moving Average is based on a mathematical formula, while ARIMA and Prophet use statistical models
Answer: A
