The following data (stored in EuroDollar) represent the sixth-month Eurodollar

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).

The following data (stored in EuroDollar) represent the sixth-month Eurodollar