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Suppose that Random Forest is used for predicting the 2-day moving average of today's price and tomorrow's price (i.e., short-term future trend) based on the
Suppose that Random Forest is used for predicting the 2-day moving average of today's price and tomorrow's price (i.e., short-term future trend) based on the 2-day moving average of today's price and yesterday's price. This means that the moving average of today's price and yesterday's price is used as the feature. Assume that the following data (i.e., Day 1- Day 4) are used for training purposes and Day 3 is used as the root node. On Day 5, what is the predicted short-term future trend (i.e., based on just the root node)? State any assumptions. Answer: Predicted short-term future trend (i.e., moving average of today's and tomorrow's stock prices) for Day 5= Calculation steps
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