The following data (stored in EuroDollar) represent the sixth-month Eurodollar deposit rate from 2001 to 2009:
Year EuroDollar Rate
2001..........................3.65
2002..........................1.81
2003..........................1.16
2004..........................1.72
2005..........................3.71
2006..........................5.27
2007..........................5.27
2008..........................3.48
2009..........................1.51
a. Plot the data.
b. Fit a three-year 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 2010?
e. Repeat (c) and (d), using a smoothing coefficient of W = 0.25.
f. Compare the results of (d) and (e).