Question

find the mode for the five - day simple moving average for the following daily closing stock prices, in dollars.
week 1: 50, 52, 57, 49, 55
week 2: 54, 60, 56, 59, 59
week 3: 61, 67, 59, 65, 58

Explanation:

Step1: Calculate the five - day simple moving average for each week

The formula for the simple moving average (SMA) is \(SMA=\frac{\sum_{i = 1}^{n}x_{i}}{n}\), where \(n = 5\) (number of days) and \(x_{i}\) are the daily stock prices.
For Week 1: \(SMA_1=\frac{50 + 52+57+49+55}{5}=\frac{263}{5}=52.6\)
For Week 2: \(SMA_2=\frac{54 + 60+56+59+59}{5}=\frac{288}{5}=57.6\)
For Week 3: \(SMA_3=\frac{61+67+59+65+58}{5}=\frac{310}{5}=62\)

Step2: Find the mode of the moving - average values

The mode is the value that appears most frequently in a data set. The moving - average values are \(52.6\), \(57.6\), and \(62\). Each value appears only once.

Answer:

There is no mode for this data set of five - day simple moving averages.