Question

The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the simple three-month moving average for each month for both companies. (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.)

	IBM				AMZN
January	$	181.04		$	627.91
February		180.89			633.92
March		204.07			559.97
April		221.08			551.70
May		187.57			489.50
June		213.23			483.58
July		247.79			609.39
August		191.86			532.41
September		225.35			510.10
October		215.79			611.83
November		200.84			582.86
December		178.42			666.80

Answer 1

3 month moving average for IBM :

1st 3 month moving average = ( 181.04 + 180.89 + 204.07 ) / 3 = $ 188.67

2nd 3 month moving average = ( 180.89 + 204.07 + 221.08 ) / 3 = $202.01

3rd 3 month moving average = ( 204.07 +221.08 + 187.57 ) / 3 = $204.24

4th 3 month moving average = ( 221.08 + 187.57 + 213.23 ) / 3 =$ 207.29

5th 3 month moving average = ( 187.57 + 213.23 + 247.79 ) / 3 =$ 216.20

6th 3 month moving average = ( 213.23 + 247.79 + 191.86 ) / 3 = $ 217.63

7th 3 month moving average = ( 247.79 + 191.86 + 225.35 ) / 3 =$221.67

8th 3 month moving average = ( 191.86 + 225.35 +215.79) / 3 =$ 211

9th 3 month moving average = ( 225.35 + 215.79 + 200.84) / 3 =$ 213.99

10th 3 month moving average = ( 215.79 + 200.84 + 178.42) / 3 =$ 198.35

3 month moving average for AMZN :

1st 3 month moving average = ( 627.91 + 633.92+559.97 ) / 3 = $607.27

2nd 3 month moving average = ( 633.92+559.97 + 551.7 ) / 3 = $581.86

3rd 3 month moving average = ( 559.97 + 551.7 + 489.50 ) / 3 = $ 533.72

4th 3 month moving average = ( 551.7 + 489.50 + 483.58) / 3 =$ 508.26

5th 3 month moving average = ( 489.50 + 483.58 + 609.39 ) / 3 =$ 527.49

6th 3 month moving average = ( 483.58 + 609.39 + 532.41) / 3 = $541.79

7th 3 month moving average = (609.39 + 532.41 + 510.10) / 3 =$550.63

8th 3 month moving average = ( 532.41 + 510.10+611.83) / 3 =$551.45

9th 3 month moving average = ( 510.10+611.83 + 582.86) / 3 =$ 568.26

10th 3 month moving average = ( 611.83 + 582.86 + 666.80) / 3 =$ 620.50