Hotel occupancy rates. The monthly occupancy rates for hotels in Honolulu, Hawaii, from January 2000 to December 2004 are available for the same time period as we examined in Exercises 39 and 40.

Use the data to answer the following questions.

a) Identify the time series components you see in the graph. If you see seasonality, what is the period? Use your answers to develop an autoregressive model.

b) Examine the residuals over time to evaluate the Independence Assumption.

c) Obtain a forecast for January 2005.

Transcribed Image Text:

Hotel Occupancy gggg 70- 90- 80 60+ 50 ||||| Month Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Year 2000 2001 2002 2001 2002 2003 2004