Suppose that I have the following stock prices for the last seven days. Day Stock Price...
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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. 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.
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Day Stk Price 3 MA Error Abs Deviation sum of 3 previous prices Stock price 3 MA I ... View the full answer
Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Posted Date:
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