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 file weeklyNASDAQ.xls(see attachment) extracted from finance.yahoo.com:
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?
Use Excel or PhStat 2 (excel extension program). I need direction and explanation how to use Excel or PhStat 2.
The solution answers the question below.