Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling Date   Rate   Date   Rate   Date   Rate   1-Apr-04     1.8764     13-Apr-04     1.8260     23-Apr-04     1.7674     2-Apr-04     1.8693     14-Apr-04     1.7802     26-Apr-04     1.7857     5-Apr-04     1.8140     15-Apr-04     1.7935     27-Apr-04     1.7937     6-Apr-04     1.8674     16-Apr-04     1.8108     28-Apr-04     1.7440     7-Apr-04     1.8410     19-Apr-04     1.8155     29-Apr-04     1.7849     8-Apr-04     1.8525     20-Apr-04     1.7916     30-Apr-04     1.7855     9-Apr-04     1.8422     21-Apr-04     1.7780     3-May-04     1.7780     12-Apr-04     1.8558     22-Apr-04     1.7688     4-May-04     1.7638     5-May-04     1.7832     13-May-04     1.7589     21-May-04     1.7560     6-May-04     1.7741     14-May-04     1.7588     24-May-04     1.7923     7-May-04     1.7942     17-May-04     1.7569     25-May-04     1.8396     10-May-04     1.7923     18-May-04     1.7757     26-May-04     1.8345     11-May-04     1.7744     19-May-04     1.7856     27-May-04     1.8788     12-May-04     1.7843     20-May-04     1.7710     28-May-04     1.8930            Click here for the Excel Data File

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Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling
Date   Rate   Date   Rate   Date   Rate  
1-Apr-04     1.8764     13-Apr-04     1.8260     23-Apr-04     1.7674    
2-Apr-04     1.8693     14-Apr-04     1.7802     26-Apr-04     1.7857    
5-Apr-04     1.8140     15-Apr-04     1.7935     27-Apr-04     1.7937    
6-Apr-04     1.8674     16-Apr-04     1.8108     28-Apr-04     1.7440    
7-Apr-04     1.8410     19-Apr-04     1.8155     29-Apr-04     1.7849    
8-Apr-04     1.8525     20-Apr-04     1.7916     30-Apr-04     1.7855    
9-Apr-04     1.8422     21-Apr-04     1.7780     3-May-04     1.7780    
12-Apr-04     1.8558     22-Apr-04     1.7688     4-May-04     1.7638    
5-May-04     1.7832     13-May-04     1.7589     21-May-04     1.7560    
6-May-04     1.7741     14-May-04     1.7588     24-May-04     1.7923    
7-May-04     1.7942     17-May-04     1.7569     25-May-04     1.8396    
10-May-04     1.7923     18-May-04     1.7757     26-May-04     1.8345    
11-May-04     1.7744     19-May-04     1.7856     27-May-04     1.8788    
12-May-04     1.7843     20-May-04     1.7710     28-May-04     1.8930    
 

 

 
 Click here for the Excel Data File
 
(a) Make a line chart and fit an m-period moving average to the exchange rate data shown above with m = 2, 3, 4, and 5 periods. For each method, state the last MA value. (Round your answers to 4 decimal places.)
 

 

m-period Next period forecast
2      
3      
4      
5      
 


(b) Which value of m do you prefer?
  
The preferred m value is   (Click to select)   2   3   4   5  . This value of m Using this allows one to forecast the weekly or monthly trends   (Click to select)   with   without  overreacting to daily fluctuations.
 
(c) Is a moving average appropriate for this kind of data?
  
  (Click to select)   Yes   No  , a moving average is   (Click to select)   appropriate   inappropriate  .

 
 
 
 
 
 
 
 
 
 
 
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