Answer: 4.68%

## Explanation In EWMA with infinite series, the weight assigned to the k-th prior observation is: **Weight(k) = (1-λ) × λ^(k-1)** Given: - λ = 0.94 - k = 7 (seventh prior observation) Weight(7) = (1-0.94) × (0.94)^(7-1) Weight(7) = 0.06 × (0.94)^6 Calculate (0.94)^6: 0.94² = 0.8836 0.94⁴ = 0.8836² = 0.7807 0.94⁶ = 0.7807 × 0.8836 = 0.6899 Weight(7) = 0.06 × 0.6899 = 0.041394 = 4.1394% This is approximately 4.14%, which is closest to **4.40%** in the options. Wait, let me recalculate more precisely: (0.94)^6 = 0.94 × 0.94 × 0.94 × 0.94 × 0.94 × 0.94 = 0.689869 Weight(7) = 0.06 × 0.689869 = 0.041392 = 4.1392% **Correct Answer: B (4.40%)** - The calculated weight is approximately 4.14%, which rounds to the closest option of 4.40%.

Author: LeetQuiz Editorial Team