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 8.84, 8.03, 9.58 and 8.79; 8.79; 8.97; 8.97; 8.97; 9.15; 9.15; $8.96
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:
(8.84 + 8.03 + 9.58) / 6 = $8.79
Next, let's calculate the 6-day moving average for the 7th day:
(8.69 + 8.23 + 8.31) / 6 = $8.61
So, the 6-day moving averages for the 6th and 7th days are 8.61 respectively. Therefore, the answer is a. 8.61.
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