Question: The following table gives the average monthly exchange rate between the U.S. dollar and the euro for 2009. It shows that 1 euro was equivalent

The following table gives the average monthly exchange rate between the U.S. dollar and the euro for 2009. It shows that 1 euro was equivalent to 1.289 U.S. dollars in January 2009. Develop a trend line that could be used to predict the exchange rate for 2010. Use this model to predict the exchange rate for January 2010 and February 2010.

MONTH _____________EXCHANGE RATE

January ..........................................1.289

February ........................................1.324

March .............................................1.321

April ...............................................1.317

May ................................................1.280

June ...............................................1.254

July .................................................1.230

August ...........................................1.240

September ...................................1.287

October .........................................1.298

November .....................................1.283

December .....................................1.311

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