CoastCo Insurance, Inc., is interested in forecasting annual larceny thefts in the United States using the following
Question:
a. Prepare a time-series plot of these data. On the basis of this graph, do you think there is a trend in the data? Explain.
b. Look at the autocorrelation structure of larceny thefts for lags of 1,2,3,4, and 5. Do the autocorrelation coefficients fall quickly toward zero* Demonstrate that the critical value for rk is 0.417. Explain what these results tell you about a trend in the data!)
c. On the basis of what is found in parts a and b, suggest a forecasting method from Table 2.1 that you think might be appropriate for this series.
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Related Book For
Business Forecasting With Forecast X
ISBN: 647
6th Edition
Authors: Holton Wilson, Barry Keating, John Solutions Inc
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