In the weighted moving average forecast, weights must?
A) Be non-negative
B) Sum to 1
C) Be non-negative and sum to 1
D) Be neither non-negative nor sum to 1

Question

Quizplus · Accepted Answer

In a weighted moving average forecast, weights must be non-negative to make logical sense since negative weights would imply that the historical data points have a negative influence on the forecast. Additionally, the weights must sum to 1 so that the forecast is a weighted average of the historical data points. Therefore, option C is the correct choice.

In the Weighted Moving Average Forecast, Weights Must