Practice Simple Moving Average (11.3.2.1) - Index Numbers and Moving Averages

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9 questions

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2 cards from this section. Quick, good the night before a test.
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6 questions · about 4 min · pass mark 70%. Hints available.
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3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is the formula for calculating a Simple Moving Average?
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Think about how you average numbers in general.
Question 2.
If the data points are 2, 4, 6 for three periods, what is the SMA?
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Add the three numbers first.
3Question 3.
What does SMA stand for?
- Simple Moving Average
- Standard Mean Average
- Sequential Moving Average
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It's about smoothing trends.
4Question 4.
The Simple Moving Average is calculated by taking the average of a set number of data points. True or False?
- True
- False
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Think about how averages work.
Question 5.
Given the following daily sales for a week: (100, 150, 200, 250, 300, 250, 400). Calculate the 3-day Simple Moving Average and discuss its implications.
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Consider how data over the specified days builds the average.
Question 6.
Critique the effectiveness of a 5-day SMA compared to a 10-day SMA in volatile stock markets, where price swings are frequent.
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Analyze each SMA's responsiveness versus smoothness.

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