Daily share-price data is given over a seven-day period for a company.Calculate the five-day moving average over the period.
14 June:$6.75
15 June:$6.80
16 June:$6.94
17 June:$6.58
18 June:$6.23
21 June:$5.95
22 June:$5.80
A) $6.23; $5.95; $5.80
B) $6.23; $6.50; $6.44
C) $6.66; $6.50; $6.30
D) $6.66; $6.54; $6.44

Question

Quizplus · Accepted Answer

To calculate the five-day moving average, we take the sum of the prices over the past five days and divide by 5. Here are the calculations:
June 14-18: (6.75 + 6.8 + 6.94 + 6.58 + 6.23) / 5 = 6.46
June 15-19: (6.8 + 6.94 + 6.58 + 6.23 + 5.95) / 5 = 6.50
June 16-20: (6.94 + 6.58 + 6.23 + 5.95 + 5.8) / 5 = 6.30
So the five-day moving average on each of the last three days was $6.46, $6.50, and $6.30. The best choice given is C, which matches these values.

Daily Share-Price Data Is Given Over a Seven-Day Period for a Company.Calculate