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%.