The sum of the weights in a weighted moving average forecast
A)must equal the number of periods being averaged.
B)must equal 1.00.
C)must be less than 1.00.
D)must be greater than 1.00.

Question

Quizplus · Accepted Answer

The sum of the weights in a weighted moving average forecast must equal 1.00. This is because the weights are assigned based on the relative importance of each period in the forecast, and they must add up to 100% (or 1.00 in decimal form) in order to ensure that the forecast is consistent and accurate.

The Sum of the Weights in a Weighted Moving Average