(Situation K) Foreign Exchange Rates, the Values of Foreign Currency

question 20

Essay

(Situation K) Foreign Exchange rates, the values of foreign currency in U.S. dollars, are important to investors and international travelers. The table lists the monthly foreign exchange rates of the British pound (in U.S. dollars per pound) for a certain year.
$$\begin{array} { l l } \underline {\text { Month }} & \underline { \text { Exchange Rate } } \\\text { January } & 1.13 \\\text { February } & 1.10 \\\text { March } & 1.13 \\\text { April } & 1.23 \\\text { May } & 1.25 \\\text { June } & 1.28 \\\text { July } & 1.38 \\\text { August } & 1.39 \\\text { September } & 1.36 \\\text { October } & 1.42 \\\text { November } & 1.44 \\\text { December } & 1.44\end{array}$$
-Calculate the value of the exponentially smoothed series for April using a smoothing constant of $w = 0.7$

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Definitions:

Subdividing

The process of dividing land or property into smaller lots that can be sold separately.

Access

The means or opportunity to approach or enter a place or to obtain or make use of something.

Enforceable

Capable of being imposed or upheld by law.

Contracts

Contracts are legally binding agreements between two or more parties that outline terms and conditions and are enforceable by law.