Solution:In Nuclear reactor, graphite is used for moderation of neutrons. Keep that simple, neutrons are needed to bring to a certain energy level (0.025eV) which is known as thermalization or moderation.Graphite is preferred over all other materials because of:
1. Graphite has low neutron absorption cross section, simply, it can absorb neutrons to a minimum extent.
2. Graphite has high scattering cross section that is it scatters neutrons. In other words, it deviates a neutron by colliding with neutrons within it's path.
3. Graphite has high logarithmic energy decrement. Simply, it losses much more energy in every collision. That's why when it collides, it losses energy rapidly.
From these parameters, we calculate a factor, Moderating Ratio which is the measure of effectiveness of a material as a neutron moderator. Albeit, heavy water (D2O) has the highest Moderating Ratio, but, graphite has its own distinctive advantages such as it's solid, it occupies less volume and above all, it's cheap.