How have stocks performed in the past? The following table presents the data stored in Stock Performance. Which show the performance of a broad measure of stock performance (by percentage) for each decade from the 1830s through the 2000s:

a. Plot the time series.
b. Fit a three-period moving average to the data and plot the results.
c. Using a smoothing coefficient of W - 0.50, exponentially smooth the series and plot the results.
d. What is your exponentially smoothed forecast for the 2010s?
e. Repeat (c) and (d), using W = 0.25.
f. Compare the results of (d) and (e).
g. What conclusions can you reach concerning how stocks have performed in the past?

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Performance ( % ) | Decade Performance (%) Decade 1830s 1840s 1850s 1860s 1870s 1880s 1890s 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 0.5 13.3 -2.2 9.6 18.2 8.3 6.6 16.6 17.6 2.8 12.8 6.6 12.5 6.0 5.5 10.9 2.2