## Related questions with answers

Determine the simple moving averages (SMA) by subtraction and addition for each set of 10 consecutive day dosing prices. 4-day SMA $26.31,$25.94, $27.65,$27.13, $26.81,$26.65, $26.55,$25.89, $25.82,$25.87.

Solution

VerifiedDetermine the simple moving average by subtraction and addition.

$\begin{align*} \text{Day 1 to 4} &= \dfrac{26.31 + 25.94 + 27.65 + 27.13}{4} &&= \dfrac{107.03}{4} &&\approx 26.76\\ \text{Day 2 to 5} &= 26.76 - \dfrac{26.31}{4} + \dfrac{26.81}{4} &&= 26.76 + \dfrac{0.5}{4} &&\approx 26.89\\ \text{Day 3 to 6} &= 26.89 - \dfrac{25.94}{4} + \dfrac{26.65}{4} &&= 26.89 + \dfrac{0.71}{4} &&\approx 27.07\\ \text{Day 4 to 7} &= 27.07 - \dfrac{27.65}{4} + \dfrac{26.55}{4} &&= 27.07 - \dfrac{1.1}{4} &&\approx 26.80\\ \text{Day 5 to 8} &= 26.80 - \dfrac{27.13}{4} + \dfrac{25.89}{4} &&= 26.80 - \dfrac{1.24}{4} &&= 26.49\\ \text{Day 6 to 9} &= 26.49 - \dfrac{26.81}{4} + \dfrac{25.82}{4} &&= 26.49 - \dfrac{0.99}{4} &&\approx 26.24\\ \text{Day 7 to 10} &= 26.24 - \dfrac{26.65}{4} + \dfrac{25.87}{4} &&= 26.24 - \dfrac{0.68}{4} &&= 26.07\\ \end{align*}$

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