Question

Assume the following daily closings for the Dow Jones Industrial Average:

Day	DJIA		Day	DJIA
1	13,050		7	13,160
2	13,130		8	13,110
3	13,195		9	13,240
4	13,120		10	13,325
5	13,110		11	13,220
6	13,120		12	13,280

1. Calculate a four-day moving average for Days 4 through 12. Round your answers to two decimal places.

   Day	Moving average
   4
   5
   6
   7
   8
   9
   10
   11
   12

2. Assume that the index on Day 13 closes at 13,260. Would this signal a buy or sell decision?

   This would signal a (-Select-) buy sell Item 10 decision.

Answer 1

Here is the table.

If the index on Day 13 closes at 13260, that means it closed below 4 day moving average.

That signals to SELL decision.