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    Moving Average Explanation and Calculation

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    I am trying to understand the following question:

    If the overall trend of the dependent variable is decreasing, will a k-period
    moving average be greater than a moving average obtained with k minus 1 periods?

    If so, why?

    I cannot seem to grasp this concept and I am looking for some clarification.

    © BrainMass Inc. brainmass.com June 3, 2020, 5:54 pm ad1c9bdddf
    https://brainmass.com/statistics/central-tendency/moving-average-explanation-and-calculation-42035

    Solution Preview

    nvestopedia explains Moving Average - MA...
    Moving averages are used to emphasize the direction of a trend and to smooth out price and volume fluctuations, or "noise", that can confuse interpretation. Typically, upward momentum is ...

    Solution Summary

    This solution explains the concept of moving average.

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