1.4a Assignment

Front

What is a Simple Moving Average (SMA)?

Back

A Simple Moving Average (SMA) is a calculation that takes the average of a set of values over a specific number of periods, smoothing out fluctuations to identify trends.

Front

How do you calculate a 5-day Simple Moving Average (SMA)?

Back

To calculate a 5-day SMA, sum the prices of the asset over the last 5 days and divide by 5.

Front

What is the formula for calculating the average (mean)?

Back

The average (mean) is calculated by summing all values and dividing by the number of values.

Front

How do you round a number to the nearest tenth?

Back

To round a number to the nearest tenth, look at the hundredths place. If it's 5 or more, round up; if it's less than 5, round down.

Front

What is the average of 18, 22, 12, and 30?

Back

The average is 20.5, calculated as (18 + 22 + 12 + 30) / 4.

Front

What is the 5-day SMA for the prices $220, $270, $210, $235, $280, and $195?

Back

The 5-day SMA is $243, calculated as (220 + 270 + 210 + 235 + 280) / 5.

Front

What is the 5-day SMA for the prices $125, $125, $130, $150, $120, and $130?

Back

The 5-day SMA is $130, calculated as (125 + 125 + 130 + 150 + 120) / 5.

Front

What does it mean to round 3.24 to the nearest tenth?

Back

Rounding 3.24 to the nearest tenth means adjusting it to 3.2, as the hundredths place (4) is less than 5.

Front

What is the 5-day SMA for the prices $100, $200, $300, $400, $500?

Back

The 5-day SMA is $300, calculated as (100 + 200 + 300 + 400 + 500) / 5.

Front

What is the significance of using a Simple Moving Average in data analysis?

Back

SMA helps to smooth out price data to identify trends over time, making it easier to analyze patterns.