Moving average - Quiz
Moving average
  • 1. What is a major statistical vulnerability of the moving average when estimating a trend?
A) It requires more computing power than the median.
B) It is susceptible to rare events or rapid shocks.
C) It cannot handle time series data.
D) It is unable to process large datasets.
  • 2. When is the moving average statistically optimal for recovering a trend?
A) When fluctuations are normally distributed.
B) When the data contains many anomalies.
C) When fluctuations are Laplace distributed.
D) When the time series is purely random.
  • 3. Why does the normal distribution make the moving average sensitive to large deviations?
A) It does not place high probability on very large deviations.
B) It assumes the mean is always zero.
C) It places too much weight on the middle value.
D) It ignores the variance of the data.
  • 4. What statistical distribution assumes that the moving median is optimal?
A) Uniform distribution.
B) Poisson distribution.
C) Laplace distribution.
D) Normal distribution.
  • 5. How can the moving median be efficiently computed for large values of n?
A) By calculating the arithmetic mean.
B) By sorting the entire time series repeatedly.
C) By updating an indexable skiplist.
D) By using a regression model.
  • 6. What is the moving median equivalent to when it is central?
A) Weighted average model.
B) Median filter.
C) Normal distribution filter.
D) Moving average regression.
  • 7. In which field does the median filter have applications?
A) Image signal processing.
B) Quantum physics.
C) Financial forecasting.
D) Weather prediction.
  • 8. Compared to the normal distribution, what does the Laplace distribution do for a given variance?
A) Places lower probability on rare events.
B) Makes the data perfectly linear.
C) Eliminates all variance.
D) Places higher probability on rare events.
  • 9. In a moving average regression model, what are the weights considered to be?
A) The median of the distribution.
B) Random noise.
C) Parameters to be estimated.
D) Fixed constants.
  • 10. Why are the moving average and moving average regression model often confused?
A) Due to their similar names.
B) Because they use the exact same calculation.
C) Because they are identical methods.
D) Because they have the same statistical optimality.
  • 11. What is another name for a moving average?
A) Constant variance
B) Fixed summation
C) Rolling average
D) Static median
  • 12. Mathematically, what type of operation is a moving average?
A) Differentiation
B) Integration
C) Convolution
D) Logarithmic scaling
  • 13. Why is the moving average sometimes called a boxcar filter?
A) Because it moves like a boxcar
B) Because the boxcar function outlines its coefficients
C) Because it uses square root calculations
D) Because it was used in the train industry
  • 14. In what year was the technique of moving averages invented?
A) 1905
B) 1799
C) 1865
D) 1833
  • 15. Who invented the moving average technique?
A) The Bank of England
B) The London Stock Exchange
C) The University of Cambridge
D) The Royal Statistical Society
  • 16. Which data structure is efficient for calculating a moving average on real-time data?
A) FIFO / circular buffer
B) Binary tree
C) Hash table
D) Stack
  • 17. What is the frequency response of a simple moving average also known as?
A) Gaussian kernel
B) Polynomial decay
C) Sinc-in-frequency
D) Cosine oscillation
  • 18. What is the interval width used for the integral in the continuous moving average?
A) ε
B) x - ε
C) ε/2
D) 2ε
  • 19. What is the formula for CA_n?
A) (x1 + ... + xn) / (n+1)
B) (x1 + ... + xn) * n
C) (x1 + ... + xn) / n
D) (x1 * ... * xn) / n
  • 20. What is the update formula for the cumulative average CA_{n+1}?
A) (xn+1 + n * CAn) / (n + 1)
B) (xn+1 + n) * CAn / n
C) (xn+1 + CAn) / n
D) (xn+1 * n) + CAn / n+1
  • 21. What is an application of weighted moving average in digital imaging?
A) Increasing image resolution
B) Removing pixelization
C) Color correction
D) Encrypting image files
  • 22. In finance, how are the weights arranged in an n-day weighted moving average?
A) Arithmetical progression
B) Uniform distribution
C) Exponential decay
D) Logarithmic progression
  • 23. What is an alternative name for the exponential moving average?
A) Leaky integrator
B) Fast filter
C) Triangle integrator
D) Volume filter
  • 24. Who is credited with the formulation of the exponential moving average mentioned in the text?
A) John Stuart Hunter
B) Spencer
C) Isaac Newton
D) Alan Turing
  • 25. What is the name of the multivariate implementation of EWMA?
A) MEMA
B) MEWMA
C) Linear EWMA
D) Multivariate WMA
  • 26. Which algorithm improves the runtime of the power-law moving average to O(n log n)?
A) Fast Fourier Transform
B) Matrix inversion
C) Linear interpolation
D) Recursive summation
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