Daily Spot Exchange Rate, U.S. Dollars per Pound Sterling
Date		Rate				Date		Rate				Date		Rate
1-Apr-04			1.8664			13-Apr-04			1.8260			23-Apr-04			1.7674
2-Apr-04			1.8393			14-Apr-04			1.7902			26-Apr-04			1.7857
5-Apr-04			1.8140			15-Apr-04			1.7785			27-Apr-04			1.7925
6-Apr-04			1.8474			16-Apr-04			1.8004			28-Apr-04			1.7720
7-Apr-04			1.8410			19-Apr-04			1.8055			29-Apr-04			1.7851
8-Apr-04			1.8425			20-Apr-04			1.7914			30-Apr-04			1.7844
9-Apr-04			1.8422			21-Apr-04			1.7720			3-May-04			1.7720
12-Apr-04			1.8458			22-Apr-04			1.7684			4-May-04			1.7807
5-May-04			1.7832			13-May-04			1.7584			21-May-04			1.7880
6-May-04			1.7841			14-May-04			1.7572			24-May-04			1.7908
7-May-04			1.7942			17-May-04			1.7695			25-May-04			1.8335
10-May-04			1.7823			18-May-04			1.7695			26-May-04			1.8242
11-May-04			1.7644			19-May-04			1.7727			27-May-04			1.8469
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 Excels Data Analysis or other software such as Minitab) using = .05, .10, .20, and .50. The degree of smoothing varies dramatically as is increased. (c) Which value of do you prefer? (Round your answers to 2 decimal places.) = (d) Is exponential smoothing appropriate for this kind of data? Yes