You initialize v incorrectly. Try it this way....
a=[1 2 3 5 4 8];
v=ones(length(a));
v(1)=a(1);
for k=2:length(a)
if(k<3)
v(k)=v(k)*(k-1);
else
v(k)=(v(k-1)+(v(k))/3);
end
end
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