Question

The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	IBM				AMZN
January	$	172.64		$	607.61
February		175.29			618.80
March		186.43			579.71
April		202.46			546.10
May		194.29			518.62
June		206.79			500.38
July		229.17			605.19
August		209.08			538.71
September		218.63			513.74
October		214.11			597.69
November		194.54			595.04
December		174.50			651.40

Answer 1

		A		B	C
	IBM		3 Month Average	Smoothing Constant	Exponential Moving average(IBM)	AMZN	Smoothing Constant	3 Month Average	Exponential Moving average(AMZN)
	January	172.64		0.6666667		607.61	0.6666667
	February	175.29		0.6666667		618.8	0.6666667
	March	186.43	178.12	0.6666667	178.12	579.71	0.6666667	602.04	602.04
	April	202.46		0.6666667	194.3466675	546.1	0.6666667		564.75
	May	194.29		0.6666667	194.3088892	518.62	0.6666667		534.00
	June	206.79		0.6666667	202.6296301	500.38	0.6666667		511.59
	July	229.17		0.6666667	220.3232109	605.19	0.6666667		573.99
	August	209.08		0.6666667	212.8277366	538.71	0.6666667		550.47
	September	218.63		0.6666667	216.6959124	513.74	0.6666667		525.98
	October	214.11		0.6666667	214.9719707	597.69	0.6666667		573.79
	November	194.54		0.6666667	201.3506562	595.04	0.6666667		587.96
	December	174.5		0.6666667	183.4502178	651.4	0.6666667		630.25
	Smoothing Constant	2/3=		0.6666667
	IBM
	March Moving Average	178.12	(172.64+175.29+186.43)/3
	April moving Average=0.666667*(202.46-178.12)+178.12=				194.34667
	May Moving Average=0.666667*(194.29-194.346667))+194.346667=					194.3089
	AMZN
	March Moving Average		(607.61+618.8+579.71)/3
	April moving Average=0.666667*(546.1-602.04)+602.04=				564.75
	May Moving Average=0.666667*(518.62-564.75))+564.75=				534.00