Suppose That You Want to Set Up a 3-Month Weighted

question 115

Multiple Choice

Suppose that you want to set up a 3-month weighted moving average forecasting system. You want the weights to be percentages (that add to 100%) . Furthermore, you want weights for the most recent two months to be equal but you want each of those weights to be twice as large as the weight for the oldest month. What should the weight be for the oldest month?

• A) 33%
• B) 25%
• C) 80%
• D) 50%
• E) 20%

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