Assume the following daily closings for the Dow Jones Industrial Average:
|
Day
|
DJIA
|
Day
|
DJIA
|
|
1
|
13,010
|
7
|
13,220
|
|
2
|
13,100
|
8
|
13,130
|
|
3
|
13,165
|
9
|
13,250
|
|
4
|
13,080
|
10
|
13,315
|
|
5
|
13,070
|
11
|
13,240
|
|
6
|
13,150
|
12
|
13,310
|
a. Calculate a four-day moving average for Days 4 through 12.
b. Assume that the index on Day 13 closes at 13,300. Would this signal a buy or sell decision?