Question

Calculate a three-day weighted moving average for the price of the stock for the end of Day 7 where the most recent price has a weight of 3, the next has a weight of 2, and the oldest price has a weight of 1. 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

The three-day weighted moving average for the price of the stock at the end of Day 7 is 57.17.

How do we calculate a weighted moving average?

Note that since this is for the end of Day 7, it implies that the actual Day 7 Stock Price is not yet known at the time of the calculation and we need to forecast it.

Therefore, the most recent price is Day 6 Sock Price and a three-day weighted moving average for this question can be calculated as follows:

Three-day weighted moving average = ((Day 6 Sock Price * 3) + (Day 5 Sock Price * 2) + (Day 4 Sock Price * 1)) / (3 + 2 + 1)

Three-day weighted moving average = ((55.00 * 3) + (59.00 * 2) + (60.00 * 1)) / (3 + 2 + 1)

Three-day weighted moving average = 57.17

Learn more about the weighted moving average here: brainly.com/question/19260285.

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