6 Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling Date Rate Date Rate Date Rate 1-Apr-04 1. 8564 13-Apr-04 1. 8160 23-Apr-04 1. 7674 2-Apr-04 1. 8293 14-Apr-04 1. 7902 26-Apr-04 1.7857 2 5-Apr-04 1. 8140 15-Apr-04 1. 7785 27-Apr-04 1.7925 points 6-Apr-04 1.8374 16-Apr-04 1. 8004 28-Apr-04 1.7720 7-Apr-04 1. 8410 19-Apr-04 1. 8055 29-Apr-04 1. 7751 8-Apr-04 1. 8325 20-Apr-04 1. 7914 30-Apr-04 1. 7744 9-Apr-04 1. 8322 21-Apr-04 1.7720 3-May -04 1.7720 12-Apr-04 1. 8358 22-Apr-04 1. 7684 4-May -04 1.7907 5-May -04 1.7932 13-May-04 1. 7584 21-May -04 1. 7880 6-May -04 1. 7941 14-May -04 1. 7572 24-May -04 1. 7908 7-May-04 1. 7842 17-May -04 1.7695 25-May -04 1. 8135 10-May-04 1. 7723 18-May -04 1. 7695 26-May -04 1. 8142 11-May-04 1. 7544 19-May -04 1. 7827 27-May -04 1. 8369 12-May -04 1.7743 20-May -04 1.7710 28-May -04 1. 8330 Click here for the Excel Data File (b) Perform simple exponential smoothing (using Excel's Data Analysis or other software such as Minitab) using or = .05, 10, .20, and .50. The degree of smoothing |varies @ dramatically as a is increased. (c) Which value of a do you prefer? (Round your answers to 2 decimal places.) a = (d) Is exponential smoothing appropriate for this kind of data? Yes