Questions: What is the weighted moving average forecast of BTCAvgClosing for the month of March 2023 using a 3month forecast with the following weights: 0.6-Feb, 0.3-Jan, 0.1-Dec? 13959.3 20164.6 21733 10645.5

What is the weighted moving average forecast of BTCAvgClosing for the month of March 2023 using a 3month forecast with the following weights: 0.6-Feb, 0.3-Jan, 0.1-Dec?
13959.3
20164.6
21733
10645.5

Transcript text: What is the weighted moving average forecast of BTC_AvgClosing for the month of March 2023 using a 3month forecast with the following weights: $0.6-\mathrm{Feb}, 0.3-$ Jan, 0.1-Dec? 13959.3 20164.6 21733 10645.5

Solution

Solution Steps

To calculate the weighted moving average forecast for March 2023, we need to use the given weights for the previous three months: February, January, and December. Multiply each month's average closing value by its respective weight and sum the results to get the forecast for March.

Step 1: Define the Average Closing Values

We have the average closing values for the previous three months as follows:

$ \text{BTC\_AvgClosing}_{\text{Dec}} = 20000 $
$ \text{BTC\_AvgClosing}_{\text{Jan}} = 21000 $
$ \text{BTC\_AvgClosing}_{\text{Feb}} = 22000 $

Step 2: Define the Weights

The weights assigned to each month are:

$ w_{\text{Dec}} = 0.1 $
$ w_{\text{Jan}} = 0.3 $
$ w_{\text{Feb}} = 0.6 $

Step 3: Calculate the Weighted Moving Average Forecast

The weighted moving average forecast for March 2023 can be calculated using the formula: \[ \text{Forecast}_{\text{March}} = w_{\text{Dec}} \cdot \text{BTC\_AvgClosing}_{\text{Dec}} + w_{\text{Jan}} \cdot \text{BTC\_AvgClosing}_{\text{Jan}} + w_{\text{Feb}} \cdot \text{BTC\_AvgClosing}_{\text{Feb}} \] Substituting the values: \[ \text{Forecast}_{\text{March}} = 0.1 \cdot 20000 + 0.3 \cdot 21000 + 0.6 \cdot 22000 \] Calculating each term: \[ = 2000 + 6300 + 13200 = 21500 \]