Question

Use the bicycle rent data set below to calculate a 3-day weighted moving average (WMA) to predict the number of bicycles that will be rented on the next Monday. Use the weights of 0.5, 0.4, and 0.1 for the 3-day WMA, where the first weight is used for the most recent day, and the last weight is used for the least recent day. Round your answer to two decimal places, if necessary.

Answer 1

To calculate a 3-day weighted moving average (WMA) for predicting the number of bicycles rented on the next Monday, multiply the rent values for each day by their corresponding weights and sum them up. Round the result to two decimal places if necessary.

Step-by-step explanation:

To calculate a 3-day weighted moving average (WMA), you need to multiply the most recent day's rent by a weight of 0.5, the second most recent day's rent by a weight of 0.4, and the least recent day's rent by a weight of 0.1. Then, sum up these weighted values to obtain the WMA. In this case, you can use the rental data provided and apply the weights to calculate the 3-day WMA. Finally, round your result to two decimal places.