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.
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 ...
This solution explains the concept of moving average.