Question
2. Convert monthly data into quarterly/seasonal time series and estimate the following regression model that uses an exponential trend and quarterly/seasonal dummy variables. The model
2. Convert monthly data into quarterly/seasonal time series and estimate the following regression model that uses an exponential trend and quarterly/seasonal dummy variables. The model is: ln (PAt)= alpha0 + alpha1 TIMEt + alpha2 MARt + alpha3 SEPt + alpha4 DECt + ?t (1) Where: PAt = quarterly passenger arrivals. ?t = random error. Estimate the model, calculate the MAPE statistic and discuss the results. Produce fitted values and show these and the actual data in a graph. In light of the MAPE statistics (calculated above), rank the models according to their ability to forecast the future.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started