Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling
Date		Rate		Date		Rate		Date		Rate
1-Apr-04			1.8764			13-Apr-04			1.8260			23-Apr-04			1.7674
2-Apr-04			1.8693			14-Apr-04			1.7802			26-Apr-04			1.7857
5-Apr-04			1.8140			15-Apr-04			1.7935			27-Apr-04			1.7925
6-Apr-04			1.8674			16-Apr-04			1.8108			28-Apr-04			1.7720
7-Apr-04			1.8410			19-Apr-04			1.8155			29-Apr-04			1.7851
8-Apr-04			1.8525			20-Apr-04			1.7916			30-Apr-04			1.7844
9-Apr-04			1.8422			21-Apr-04			1.7780			3-May-04			1.7720
12-Apr-04			1.8558			22-Apr-04			1.7688			4-May-04			1.7607
5-May-04			1.7832			13-May-04			1.7589			21-May-04			1.7880
6-May-04			1.7741			14-May-04			1.7588			24-May-04			1.7908
7-May-04			1.7942			17-May-04			1.7569			25-May-04			1.8335
10-May-04			1.7923			18-May-04			1.7757			26-May-04			1.8342
11-May-04			1.7744			19-May-04			1.7839			27-May-04			1.8769
12-May-04			1.7843			20-May-04			1.7710			28-May-04			1.8530

(b)Perform simple exponential smoothing (using Excel's Data Analysis or other software such as Minitab) using= .05, .10, .20, and .50. The degree of smoothing (Click to select) varies does not vary dramatically asis increased. (c)Which value ofdo you prefer?(Round your answers to 2 decimal places.) = (d)Is exponential smoothing appropriate for this kind of data? (Click to select) Yes No