The method of moving average is used a. to smooth a series b. to exponentiate a series c. to plot a series d. in regression analysis

Answer to the Question

The method of moving average is primarily used in time series analysis to smooth out short-term fluctuations and highlight longer-term trends or cycles within data.

1. To Smooth a Series: This is the correct option, as moving averages help to reduce noise in a data set by averaging data points over a defined period, thus smoothing the series and making it easier to identify trends.

2. To Exponentiate a Series: This is incorrect. Exponentiation involves raising a number to a power, which is not the purpose of moving averages.

3. To Plot a Series: Although moving averages can be plotted, their primary function is not plotting, making this option inaccurate for defining their main purpose.

4. In Regression Analysis: While moving averages can be utilized in some regression contexts to prepare data, they are not a method specific to regression analysis.

Conclusion

Thus, the correct choice is a. to smooth a series. Moving averages play a critical role in statistical analysis and forecasting, particularly in the fields of finance and economics.