What is the 4-day SMA for the following closing prices: $56,$61,$50,$57,$60,$58,and $57.

Question

Quizplus · Accepted Answer

The 4-day SMA (simple moving average) is calculated by adding the closing prices of the last 4 days and dividing by 4. Therefore, the first 4-day SMA would be ($56 + $61 + $50 + $57)/4 = $56. Note that the last three values ($60,$58, and $57) are not included in the first calculation since we are looking for the 4-day SMA from the start of the data. The subsequent 4-day SMAs can be calculated by moving the window of the last 4 days across the data set. The second 4-day SMA would be ($61 + $50 + $57 + $60)/4 = $56.25, the third would be ($50 + $57 + $60 + $58)/4 = $56.25, and the last would be ($57 + $60 + $58 + $57)/4 = $58. Therefore, the only answer choice that has this sequence of values is C, making it the best choice.

What Is the 4-Day SMA for the Following Closing Prices