The data below consist of the closing price of the common stock of the American Telephone
and Telegraph Corporation on 10 recent trading days. (10)
Time(t) Price Time(t) Price
1 R24.10 6 R22.73
2 23.80 7 22.60
3 23.39 8 21.76
4 22.90 9 22.14
5 22.10 10 21.69
a. Using a five-period moving average, forecast the price of the stock for period 10. (4)
b. What is the error of the forecast in #1-a? (2)
c. Using a five-period moving average, forecast the price of the stock for period 11. (4)