Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling Date Rate Date Rate Date Rate 1-Apr-84 1.8564 13-Apr-04 1.8160 23-Apr-04 1.7674 2-Apr-84 1.8293 14-Apr-04 1.7902 1.7857 26-Apr-84 27-Apr-04 28-Apr-84 29-Apr-04 30-Apr-84 3-May -04 5-Apr-04 1.8140 1.7785 1.7925 15-Apr-04 16-Apr-04 19-Apr-04 20-Apr-04 21-Apr-04 22-Apr-04 6-Apr-04 1.8374 1.8004 1.7720 7-Apr-04 1.8410 1.8055 1.7751 8-Apr-04 1.8325 1.7914 1.7744 9-Apr-04 12-Apr-04 5-May -04 1.8322 1.7720 1.7720 1.8358 1.7684 4-May-04 1.7907 1.7932 13-May-04 1.7584 21-May-84 1.7880 6-May -84 1.7941 14-May-04 1.7572 24-May-04 1.7908 7-May-04 1.7842 17-May-04 1.7695 25-May-84 26-May-84 27-May-84 28-May-84 1.8135 10-May-84 1.7723 18-May-04 1.7695 1.8142 11-May-84 1.7544 19-May-04 1.7827 1.8369 12-May-84 1.7743 20-May-04 1.7710 1.8330 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 (b) Which value of m do you prefer? The preferred mvalue is . This value of mUsing this allows one to forecast the weekly or monthly trends without overreacting to dally fluctuations. (c) Is a moving average appropriate for this kind of data? Yes a moving average is approprlate

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling
Date
Rate
Date
Rate
Date
Rate
1-Apr-84
1.8564
13-Apr-04
1.8160
23-Apr-04
1.7674
2-Apr-84
1.8293
14-Apr-04
1.7902
1.7857
26-Apr-84
27-Apr-04
28-Apr-84
29-Apr-04
30-Apr-84
3-May -04
5-Apr-04
1.8140
1.7785
1.7925
15-Apr-04
16-Apr-04
19-Apr-04
20-Apr-04
21-Apr-04
22-Apr-04
6-Apr-04
1.8374
1.8004
1.7720
7-Apr-04
1.8410
1.8055
1.7751
8-Apr-04
1.8325
1.7914
1.7744
9-Apr-04
12-Apr-04
5-May -04
1.8322
1.7720
1.7720
1.8358
1.7684
4-May-04
1.7907
1.7932
13-May-04
1.7584
21-May-84
1.7880
6-May -84
1.7941
14-May-04
1.7572
24-May-04
1.7908
7-May-04
1.7842
17-May-04
1.7695
25-May-84
26-May-84
27-May-84
28-May-84
1.8135
10-May-84
1.7723
18-May-04
1.7695
1.8142
11-May-84
1.7544
19-May-04
1.7827
1.8369
12-May-84
1.7743
20-May-04
1.7710
1.8330
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
(b) Which value of m do you prefer?
The preferred mvalue is
. This value of mUsing this allows one to forecast the weekly or monthly trends without
overreacting to dally fluctuations.
(c) Is a moving average appropriate for this kind of data?
Yes
a moving average is approprlate
Transcribed Image Text:Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling Date Rate Date Rate Date Rate 1-Apr-84 1.8564 13-Apr-04 1.8160 23-Apr-04 1.7674 2-Apr-84 1.8293 14-Apr-04 1.7902 1.7857 26-Apr-84 27-Apr-04 28-Apr-84 29-Apr-04 30-Apr-84 3-May -04 5-Apr-04 1.8140 1.7785 1.7925 15-Apr-04 16-Apr-04 19-Apr-04 20-Apr-04 21-Apr-04 22-Apr-04 6-Apr-04 1.8374 1.8004 1.7720 7-Apr-04 1.8410 1.8055 1.7751 8-Apr-04 1.8325 1.7914 1.7744 9-Apr-04 12-Apr-04 5-May -04 1.8322 1.7720 1.7720 1.8358 1.7684 4-May-04 1.7907 1.7932 13-May-04 1.7584 21-May-84 1.7880 6-May -84 1.7941 14-May-04 1.7572 24-May-04 1.7908 7-May-04 1.7842 17-May-04 1.7695 25-May-84 26-May-84 27-May-84 28-May-84 1.8135 10-May-84 1.7723 18-May-04 1.7695 1.8142 11-May-84 1.7544 19-May-04 1.7827 1.8369 12-May-84 1.7743 20-May-04 1.7710 1.8330 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 (b) Which value of m do you prefer? The preferred mvalue is . This value of mUsing this allows one to forecast the weekly or monthly trends without overreacting to dally fluctuations. (c) Is a moving average appropriate for this kind of data? Yes a moving average is approprlate
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