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	$	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

	IBM AMZN March April May June July August September October November December

Answer 1

3 months moving average is calculated by taking the average of every 3 months combination as shown in the below table:

1. Average period = January, February, March
2. Average period = February, March, April
3. Average period = March, April, May
4. Average period = April, May, June
5. Average period = May, June, July
6. Average period = June, July, August
7. Average period =July, August, September
8. Average period =August, September, October
9. Average period =September, October, November
10. Average period =October, November, December

IBM			3MA	Amazon			3MA
January	$172.64			January	$607.61
February	$175.29			February	$618.80
March	$186.43	(172.64+175.29+186.43)/3=	$178.12	March	$579.71	(607.61+618.8+579.71)/3=	$602.04
April	$202.46	(175.29+186.43+202.46)/3=	$188.06	April	$546.10	(618.8+579.71+546.1)/3=	$581.54
May	$194.29	(186.43+202.46+194.29)/3=	$194.39	May	$518.62	(579.71+546.1+518.62)/3=	$548.14
June	$206.79	(202.46+194.29+206.79)/3=	$201.18	June	$500.38	(546.1+518.62+500.38)/3=	$521.70
July	$229.17	(194.29+206.79+229.17)/3=	$210.08	July	$605.19	(518.62+500.38+605.19)/3=	$541.40
August	$209.08	(206.79+229.17+209.08)/3=	$215.01	August	$538.71	(500.38+605.19+538.71)/3=	$548.09
September	$218.63	(229.17+209.08+218.63)/3=	$218.96	September	$513.74	(605.19+538.71+513.74)/3=	$552.55
October	$214.11	(209.08+218.63+214.11)/3=	$213.94	October	$597.69	(538.71+513.74+597.69)/3=	$550.05
November	$194.54	(218.63+214.11+194.54)/3=	$209.09	November	$595.04	(513.74+597.69+595.04)/3=	$568.82
December	$174.50	(214.11+194.54+174.5)/3=	$194.38	December	$651.40	(597.69+595.04+651.4)/3=	$614.71