Q.State the limitations of the method of moving average. (Any two)

Two limitations of the moving-average method: some end-period trend values are lost, and it cannot be used for forecasting.

The method of moving averages measures trend by smoothing the series, but it has limitations. Any two of the following:

1. Loss of trend values at the ends: for a period-$k$ moving average, trend values cannot be computed for the first and last few periods, so information is lost at both ends of the series.
2. Not suitable for forecasting: the moving average gives no mathematical equation of trend, so it cannot be used to predict/extrapolate values for future periods. …