16.23 The data file Government Net Lending Euro Area contains the time series of general government net

Question:

16.23 The data file Government Net Lending Euro Area contains the time series of general government net lending as a percent of the GDP for the Euro area countries. The dataset covers the period 2002:Q1 up to 2019:Q4, for a total of 72 quarters. Use the Holt-

Winters seasonal method to obtain forecasts of net lending as a percent of GDP up to eight quarters ahead.

Employ smoothing constants a = 0.5, b = 0.1, and g = 0.7. Graph the data and the forecasts. [Hint: It is advised to do the Holt-Winters seasonal method on a new series, defined as the original series plus 10, to avoid the impact of negative numbers. You should then subtract 10 from the forecasted series to undo the addition and convert the numbers to the correct (original)

scale.]

Step by Step Answer:

Related Book For  book-img-for-question

Essential Mathematics And Statistics For Science

ISBN: 9780470694480

2nd Edition

Authors: Graham Currell, Dr. Antony Dowman

Question Posted: