Question

Determine the 3-day simple moving averages for the ten consecutive day closing

prices.
7.78,7.90, 8.00, 7.97,7.86,7.67,7,60, 7.65,7.65, 7.70
:6
on

Answer 1

3-day Simple Moving Averages are computed by taking the average of three consecutive closing prices. The process is repeated for each set of three days within the ten-day period, resulting in a smoothed series of averages.

Step-by-step explanation:

The 3-day simple moving average (SMA) of a series of stock prices is calculated by taking the sum of three consecutive closing prices and dividing by three. For the input series 7.78, 7.90, 8.00, 7.97, 7.86, 7.67, 7.60, 7.65, 7.65, 7.70, we perform the following steps:

For days 1, 2, and 3, the SMA would be (7.78 + 7.90 + 8.00) / 3.

For days 2, 3, and 4, the SMA would be (7.90 + 8.00 + 7.97) / 3.

Continue this process until you calculate the SMA for the last three days in the series.

Here is how they are actually calculated:

Day 1-3: (7.78 + 7.90 + 8.00) / 3 = 7.8933

Day 2-4: (7.90 + 8.00 + 7.97) / 3 = 7.9567

Day 3-5: (8.00 + 7.97 + 7.86) / 3 = 7.9433

Day 4-6: (7.97 + 7.86 + 7.67) / 3 = 7.8333

Day 5-7: (7.86 + 7.67 + 7.60) / 3 = 7.7100

Day 6-8: (7.67 + 7.60 + 7.65) / 3 = 7.6400

Day 7-9: (7.60 + 7.65 + 7.65) / 3 = 7.6333

Day 8-10: (7.65 + 7.65 + 7.70) / 3 = 7.6667

These averages help show the trend by smoothing out fluctuations in the data.

Answer 2

7.013

Step-by-step explanation:

if the data is correct then this is correct,

you add all of them then divide by how many there were.