Describe the problem with answer

General
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Course Name: Introduction to Machine Learning for Trading, Section No: 4, Unit No: 4, Unit type: Quiz
The predicted price on a given day depends on the 5-day moving average. Imagine that the moving average of the price of the last 5 days is 20. The intercept is 2 and the weight for 5 days moving average or the slope is 1. What will be the predicted price on the given day?

The regression equation is given as:

price = weight of 5-days moving average x 5-days moving average + intercept

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Hi Abhijay,

For your clarity, the weight of the 5-day moving average is the slope itself. As mentioned in the question, the slope is 1 and the intercept is 2. Hence when the 5-day moving average is at 20, our model predicts, as follows:

2 + (1*20 ) = 22.

I hope it is clear. Please feel to ask if there is any other doubt you may have.