Question: 6 (a) Make an Excel line graph of the exchange rate data. Describe the pattern. (b) Click on the data and choose Add Trendline > Moving Average. Describe the effect of increasing m (e.g., m = 2, 4, 6, etc.). Include a copy of each graph with your answer. (c) Discuss how this moving average might

help a currency speculator.

Daily Dollar/Euro Exchange Rate for First 3 Months of 2005 (n = 64 days)

Date Rate Date Rate Date Rate Date Rate

3-Jan 1.3476 25-Jan 1.2954 16-Feb 1.2994 10-Mar 1.3409

4-Jan 1.3295 26-Jan 1.3081 17-Feb 1.3083 11-Mar 1.3465

5-Jan 1.3292 27-Jan 1.3032 18-Feb 1.3075 14-Mar 1.3346

6-Jan 1.3187 28-Jan 1.3033 21-Feb 1.3153 15-Mar 1.3315

7-Jan 1.3062 31-Jan 1.3049 22-Feb 1.3230 16-Mar 1.3423

10-Jan 1.3109 1-Feb 1.3017 23-Feb 1.3208 17-Mar 1.3373

11-Jan 1.3161 2-Feb 1.3015 24-Feb 1.3205 18-Mar 1.3311

12-Jan 1.3281 3-Feb 1.2959 25-Feb 1.3195 21-Mar 1.3165

13-Jan 1.3207 4-Feb 1.2927 28-Feb 1.3274 22-Mar 1.3210

14-Jan 1.3106 7-Feb 1.2773 1-Mar 1.3189 23-Mar 1.3005

17-Jan 1.3075 8-Feb 1.2783 2-Mar 1.3127 24-Mar 1.2957

18-Jan 1.3043 9-Feb 1.2797 3-Mar 1.3130 25-Mar 1.2954

19-Jan 1.3036 10-Feb 1.2882 4-Mar 1.3244 28-Mar 1.2877

20-Jan 1.2959 11-Feb 1.2864 7-Mar 1.3203 29-Mar 1.2913

21-Jan 1.3049 14-Feb 1.2981 8-Mar 1.3342 30-Mar 1.2944

24-Jan 1.3041 15-Feb 1.2986 9-Mar 1.3384 31-Mar 1.2969