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An investment agent intends to use moving average to observe the trend of one of his stock. He obtained the share price of his stock

  1. An investment agent intends to use moving average to observe the trend of one of his stock. He obtained the share price of his stock for the past 7 months, from JAN 2021 to JULY 2021 as stated in the table below.

Month

JAN

2021

FEB

2021

MAR

2021

APR

2021

MAY

2021

JUN

2021

JUL

2021

Share price (RM/unit)

1.52

1.60

2.10

2.32

2.90

2.38

2.65

  1. Use a 3-months moving average of the share price to forecast for the month of MAY 2021 and find the forecast error. (Please round the forecasted figures to 2 decimal places).
    1. marks)
  2. Use a 5-months moving average of the share price to forecast for the month of JUN 2021 and find the forecast error. (Please round the forecasted figures to 2 decimal places).
    1. marks)

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