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You have the following daily price data for a company share.  The prices for the past 7 days are $9.40, $8.84, $8.69, $8.03, $8.23, $9.58 and $8.31 respectively.  Use it to compute the 6-day moving average over the period.Question 8Answera.$8.79; $8.61b.$8.79; $8.79c.$8.97; $8.61d.$8.97; $8.79e.$8.97; $8.96f.$9.15; $8.79g.$9.15; $8.96

Question

You have the following daily price data for a company share.  The prices for the past 7 days are 9.40,9.40, 8.84, 8.69,8.69, 8.03, 8.23,8.23, 9.58 and 8.31respectively. Useittocomputethe6daymovingaverageovertheperiod.Question8Answera.8.31 respectively.  Use it to compute the 6-day moving average over the period.Question 8Answera.8.79; 8.61b.8.61b.8.79; 8.79c.8.79c.8.97; 8.61d.8.61d.8.97; 8.79e.8.79e.8.97; 8.96f.8.96f.9.15; 8.79g.8.79g.9.15; $8.96

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Solution

To calculate the 6-day moving average, you take the average of the past 6 days for each day starting from the 6th day.

First, let's calculate the 6-day moving average for the 6th day:

(9.40+9.40 + 8.84 + 8.69+8.69 + 8.03 + 8.23+8.23 + 9.58) / 6 = $8.79

Next, let's calculate the 6-day moving average for the 7th day:

(8.84+8.84 + 8.69 + 8.03+8.03 + 8.23 + 9.58+9.58 + 8.31) / 6 = $8.61

So, the 6-day moving averages for the 6th and 7th days are 8.79and8.79 and 8.61 respectively. Therefore, the answer is a. 8.79;8.79; 8.61.

This problem has been solved

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