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(b) An investment agent intends to use moving average to observe the trend of one of his stock. He obtained the share price of his
(b) 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. JAN FEB MAR APR MAY JUN JUL Month 2021 2021 2021 2021 2021 2021 2021 Share price (RM/unit) 1.52 1.602.10 2.32 2.90 2.38 2.65 (i) 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). (3 marks) (ii) 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). (4 marks)
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