To calculate the 5-Day Moving Average for the closing price on Day 6 and place it into cell C7, Renee should use the closing prices from the last five days including Day 6. The formula involves adding the closing prices for Day 2 through Day 6 and then dividing the sum by 5.
Here is a step-by-step breakdown of the formula:
1. Identify the closing prices for Days 2 to 6:
- Day 2 (Cell B3): 31.15
- Day 3 (Cell B4): 29.04
- Day 4 (Cell B5): 31.10
- Day 5 (Cell B6): 32.62
- Day 6 (Cell B7): 31.85
2. Sum the closing prices for these days:
- Sum = 31.15 + 29.04 + 31.10 + 32.62 + 31.85
3. Divide the sum by 5 to find the average:
- 5-Day Moving Average = (31.15 + 29.04 + 31.10 + 32.62 + 31.85) / 5
In Excel, the formula to be entered in cell C7 would be:
```
=AVERAGE(B3:B7)
```
However, if the cell can't use a direct function like `AVERAGE`, Renee can use the sum and divide approach:
```
=(B3 + B4 + B5 + B6 + B7) / 5
```
This formula will give her the correct 5-Day Moving Average for Day 6.
