(a) Make a line chart and fit an m-period moving average to the exchange rate data...

   

Transcribed Image Text:

(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 is5 overreacting to dalily fluctuations. . This value of m Using this allows one to forecast the weekly or monthly trends without (e) is a moving average appropriate for this kind of data? Yes . a moving average is appropriate Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling Date Rate Date Rate Date Rate 13-Apr- 23-Apr- 04 1-Apr-04 1.8564 1.8160 1.7674 04 14-Apr- 04 26-Apr- 2-Apr-04 1.8293 1.7902 1.7857 04 15-Apr- 27-Apr- 5-Apr-04 1.8140 1.7785 1.7925 04 04 28-Apr- 04 16-Apr- 6-Apr-04 1.8374 1.8004 1.7720 04 19-Apr- 29-Apr- 7-Apr-04 1.8410 1.8055 1.7751 04 04 20-Apr- 30-Apr- 8-Apr-04 1.8325 1.7914 1.7744 04 04 21-Apr- 9-Apr-04 1.8322 1.7720 3-May-e4 1.7720 04 12-Apr- 22-Apr- 1.8358 1.7684 4-May-04 1.7907 04 04 13-маy- 5-May-04 1.7932 21-May- 04 1.7584 1.7880 04 24-May- 6-May-04 1.7941 14-May- 04 1.7572 1.7908 04 17-May - 25-May- 7-May-04 1.7842 1.7695 1.8135 04 04 10-May- 18-May- 26-May- 1.7723 1.7695 1.8142 04 04 04 11-May- 19-Мay- 27-May- 1.7544 1.7827 1.8369 04 04 04 12-May- 20-Мay- 28-May- 1.7743 1.7710 1.8330 04 04 04 (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 is5 overreacting to dalily fluctuations. . This value of m Using this allows one to forecast the weekly or monthly trends without (e) is a moving average appropriate for this kind of data? Yes . a moving average is appropriate Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling Date Rate Date Rate Date Rate 13-Apr- 23-Apr- 04 1-Apr-04 1.8564 1.8160 1.7674 04 14-Apr- 04 26-Apr- 2-Apr-04 1.8293 1.7902 1.7857 04 15-Apr- 27-Apr- 5-Apr-04 1.8140 1.7785 1.7925 04 04 28-Apr- 04 16-Apr- 6-Apr-04 1.8374 1.8004 1.7720 04 19-Apr- 29-Apr- 7-Apr-04 1.8410 1.8055 1.7751 04 04 20-Apr- 30-Apr- 8-Apr-04 1.8325 1.7914 1.7744 04 04 21-Apr- 9-Apr-04 1.8322 1.7720 3-May-e4 1.7720 04 12-Apr- 22-Apr- 1.8358 1.7684 4-May-04 1.7907 04 04 13-маy- 5-May-04 1.7932 21-May- 04 1.7584 1.7880 04 24-May- 6-May-04 1.7941 14-May- 04 1.7572 1.7908 04 17-May - 25-May- 7-May-04 1.7842 1.7695 1.8135 04 04 10-May- 18-May- 26-May- 1.7723 1.7695 1.8142 04 04 04 11-May- 19-Мay- 27-May- 1.7544 1.7827 1.8369 04 04 04 12-May- 20-Мay- 28-May- 1.7743 1.7710 1.8330 04 04 04

Answer rating: 100% (QA)

a The mperiod Moving Average MA forecast The 2period Moving Average MA values are obtained in excel by taking the average of the current period and the immediately previous period data value Similarly ... View the full answer