KF.

e Exams a) Moving averages are often used in an effort to identify movements in share prices. Approximate monthly closing prices (in Sh. per share) for Glutec Ltd. for December 2018 through November 2019 are shown below: Month Price (Sh.) December 2000 40 January 2001 38 February 2001 39 March 2001 41 April 2001 36 May 2001 41 June 2001 34 July 2001 37 August 2001 35 September 2001 37 October 2001 40 November 2001 41 Required: i) Use a 3-month moving average to forecast the closing price for December 2019. (5 marks) ii) Use a 3-month weighted moving average to forecast the closing price for December 2019. Use weights of 0.4 for most recent period, 0.4 for the second period back and 0.2 for the third period back. ( 5 marks) Activate Windodusting