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