Discuss the below:
Q: THE NASDAQ stock market includes small-and medium-sized companies, many of which are in high-tech industries. Because of the nature of these companies, the NASDAQ tends to be more volatile than the Dow Jones Industrial Average or the S&P 500. The weekly values for the NASDAQ during the first 20 weeks of 2006 are listed in the data
| 6-Feb-06 |
2261.88 |
| 13-Feb-06 |
2282.36 |
| 21-Feb-06 |
2287.04 |
| 27-Feb-06 |
2302.60 |
| 6-Mar-06 |
2262.04 |
| 13-Mar-06 |
2306.48 |
| 20-Mar-06 |
2312.82 |
| 27-Mar-06 |
2339.79 |
| 3-Apr-06 |
2339.02 |
| 10-Apr-06 |
2326.11 |
| 17-Apr-06 |
2342.86 |
| 24-Apr-06 |
2322.57 |
| 1-May-06 |
2342.57 |
| 8-May-06 |
2243.78 |
| 15-May-06 |
2193.88 |
a) plot the time series.
b) flt a three-period 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) repeat (c), using W=0.25.
e) what conclusion can you reach concerning the presence or absence of trends during the first 20 weeks of 2006?