Final answer:
To calculate the weighted three-month moving average, multiply each value by its weight, sum up the weighted values, and divide by the sum of the weights.
Step-by-step explanation:
To calculate the weighted three-month moving average using weights of 0.5, 0.3, and 0.2 for periods 4-12, follow these steps:
- Multiply each period's value by the corresponding weight.
- Sum up the weighted values for the nine periods.
- Divide the sum by the sum of the weights (0.5 + 0.3 + 0.2 = 1).
This will give you the weighted three-month moving average.