1.

If the observations xi are independent random variables with variance σ2 then according to the EWMA charts, the variance of zi will be ________________

A. \(\sigma_{zi}^2 = \sigma^2 (\frac{λ}{2-λ})[1+(1+λ)^{2i}]\)
B. \(\sigma_{zi}^2 = \sigma^2 (\frac{λ}{2-λ})[1+(1-λ)^{2i}]\)
C. \(\sigma_{zi}^2 = \sigma^2 (\frac{λ}{2-λ})[1-(1-λ)^{2i}]\)
D. \(\sigma_{zi}^2 = \sigma^2 (\frac{λ}{2+λ})[1-(1-λ)^{2i}]\)
Answer» D. \(\sigma_{zi}^2 = \sigma^2 (\frac{λ}{2+λ})[1-(1-λ)^{2i}]\)


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