The weighted moving average forecasting model uses a weighting scheme to modify the effects of individual data points. This is its major advantage over the simple moving average model.

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Quizplus · Accepted Answer

The weighted moving average forecasting model assigns weights to each data point, giving more importance to the most recent or significant data, and less to the older or less significant data. This allows the model to better capture trends or patterns in the data and make more accurate forecasts than the simple moving average model, which treats all data points equally. Therefore, the statement is true.

The Weighted Moving Average Forecasting Model Uses a Weighting Scheme