Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that I have the following stock prices for the last seven days. Day Stock Price $15.15 4MA Errors Abs Deviation $15.25 $15.40 4


 

Suppose that I have the following stock prices for the last seven days. Day Stock Price $15.15 4MA Errors Abs Deviation $15.25 $15.40 4 $15.67 $15.50 $15.75 5 7. $15.78 a) Calculate 4 Day Moving Average. b) What is the Average Error and Mean Absolute Deviation for 4 Day Moving Average? c) Suppose that I told you that the Linear Regression for this data was Stock Price = 15.11 + .06*Day. Calculate predictions for each day: is this "better" than the other forecasts? Explain why Linear Regression may be a good forecasting method for this data. Note: for the test, I may add additional information such as "Tell me what the 3MA would be for Day 7" or "Would alpha = 4 have lower errors than alpha = .2 if I use Simple Exponential Smoothing?" l've pasted a second table below if you need it. %3D Abs Deviation Day Stock Price $15.15 $15.25 $15.40 Errors 1. 2. 3. $15.67 $15.50 $15.75 $15.78 4. 6. 7.

Step by Step Solution

3.38 Rating (145 Votes )

There are 3 Steps involved in it

Step: 1

Day Stk Price 3 MA Error Abs Deviation sum of 3 previous prices Stock price 3 MA I ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

18th edition

978-0077413798, 0-07-336880-6, 77413792, 978-0-07-33688, 978-0073375694

More Books

Students also viewed these Accounting questions

Question

What does the slope in a simple linear regression model measure?

Answered: 1 week ago