Suppose the following table shows the approximate price of a certain stock in December of each year from 2005 through 2014, as well as the 4-year moving averages for 2005 through 2007.t Complete the table by computing the remaining 4-year moving averages. (Note the peak in 2007 and the drop in subsequent years.) Round each average to the nearest dollar. HINT [See Example 3.] Year t 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Stock Pricel 17 20 37 16 12 10 3 1 7 7 Moving Average 17 18 23 (rounded) How does the average size year-by-year change in the moving average, compare with the average year-by-year change in the stock price? The average change in the moving average is lower

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 31EQ
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Suppose the following table shows the approximate price of a certain stock in December of each year from 2005 through 2014, as well as the 4-year moving averages for 2005 through 2007.† Complete the table by
computing the remaining 4-year moving averages. (Note the peak in 2007 and the drop in subsequent years.) Round each average to the nearest dollar. HINT [See Example 3.]
Year t 2005 2006 2007
2008
2009
2010
2011
2012
2013
2014
Stock Price
17
20
37
16
12
10
3
1
7
7
Moving
Average
17
18
23
(rounded)
How does the average size year-by-year change in the moving average, compare with the average year-by-year change in the stock price?
The average change in the moving average is lower
Transcribed Image Text:Suppose the following table shows the approximate price of a certain stock in December of each year from 2005 through 2014, as well as the 4-year moving averages for 2005 through 2007.† Complete the table by computing the remaining 4-year moving averages. (Note the peak in 2007 and the drop in subsequent years.) Round each average to the nearest dollar. HINT [See Example 3.] Year t 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Stock Price 17 20 37 16 12 10 3 1 7 7 Moving Average 17 18 23 (rounded) How does the average size year-by-year change in the moving average, compare with the average year-by-year change in the stock price? The average change in the moving average is lower
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