Question

Calculate a four-day moving average for the price of the stock for the end of day 7. day 1 - 62.00; day 2 - 56.00; day 3 - 50.00; day 4 - 60.00; day 5 - 59.00; day 6 - 55.00; day 7 - 59.00; day 8 - 63.00

Answer 1

Answer:

  58.25

Step-by-step explanation:

A "moving average" is a "boxcar average," the unweighted average over the specified number of days.

Solution

The 4-day moving average ending on day 7 is ...

  4-day average = (day 4 +day 5 +day 6 +day 7)/4

  = (60 +59 +55 +59)/4 = 233/4

  4-day average = 58.25

Answer 2

The four-day moving average for the price of the stock for the end of day 7 is 56.00

What is moving average?

The moving average on a particular day  is the average of prices on the days prior to the pricing day.

In other words, four-day moving average on day 7 is the sum the prices of four days prior to day 7 divided by the number of days whose prices were considered.

In computing the four-day moving average for day 7, we would sum the prices for days 3-6, then divide the sum by 4 since prices of 4 days were made use of.

four-day moving average on day 7=(50.00+60.00+59.00+55.00)/4

four-day moving average on day 7= 56.00

Note, as the day of pricing changes, the input prices would also change

Find out more about moving average on:https://brainly.com/question/15891755

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