Question

Use the festival data set below to calculate a 5 -year weighted moving average (wma) to predict the number of guests at the festival in 2022. use the weights of 0.4, 0.3, 0.1, 0.1, and 0.1 for the 5 -year wma, where the first weight is used for the most recent year and the last weight is used for the least recent year. What is the 5-year weighted moving average (WMA) for predicting the number of guests at the festival in 2022, using the weights 0.4, 0.3, 0.1, 0.1, and 0.1 for the most recent to least recent years?

A) 0.40
B) 0.85
C) 1.00
D) 2.15

Answer 1

To calculate the 5-year weighted moving average (wma) for predicting the number of guests at the festival in 2022, multiply the number of guests for each year by the corresponding weight and then add up the weighted sum.

Step-by-step explanation:

To calculate the 5-year weighted moving average (wma) for predicting the number of guests at the festival in 2022, we need to use the given weights of 0.4, 0.3, 0.1, 0.1, and 0.1. First, multiply the number of guests for each year by the corresponding weight:

2021 guests * 0.4 + 2020 guests * 0.3 + 2019 guests * 0.1 + 2018 guests * 0.1 + 2017 guests * 0.1

Then, add up the weighted sum to obtain the 5-year weighted moving average. This will give you the predicted number of guests at the festival in 2022.