The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the simple three-month moving average for each month for both companies. (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.) IBM AMZN January $ 173.24 $ 609.06 February 175.69 619.88 March 187.69 578.30 April 203.79 546.50 May 193.81 516.54 June 207.25 499.18 July 230.50 605.49 August 207.85 538.26 September 219.11 513.48 October 214.23 598.70 November 194.99 594.17 December 174.78 652.50
Solution :
Here,
We can find the simple three - month moving average for each month for both companies as follows
For IBM :
Simple three-month moving average at the end of march = ( 173.24 + 175.69 + 187.69 ) / 3 = 178.87
Similarly we can find for others as follows :
Months | IBM | Amazon | Average ( IBM ) | Average ( Amazon ) |
January | 173.24 | 609.06 | ||
February | 175.69 | 619.88 | ||
March | 187.69 | 578.30 | 178.87 | 602.41 |
April | 203.79 | 546.50 | 189.06 | 581.56 |
May | 193.81 | 516.54 | 195.10 | 547.11 |
June | 207.25 | 499.18 | 201.62 | 520.74 |
July | 230.50 | 605.49 | 210.52 | 540.40 |
August | 207.85 | 538.26 | 215.20 | 547.64 |
September | 219.11 | 513.48 | 219.15 | 552.41 |
October | 214.23 | 598.70 | 213.73 | 550.15 |
November | 194.99 | 594.17 | 209.44 | 568.78 |
December | 174.78 | 652.50 | 194.67 | 615.12 |
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