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5. (34 Points] Table 1 shows the daily stock price of Apple Inc. (AAPL) in the past few trading days. Table 1. Daily stock prices
5. (34 Points] Table 1 shows the daily stock price of Apple Inc. (AAPL) in the past few trading days. Table 1. Daily stock prices of Apple Inc. 1- 4. 5- 6- 7- 8- 11- 12- 13- 14- 18- Date Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov 15- Stock 255.1 256.7 256.4 256.5 259.4 260.1 262.2 262 264.5 262.6 265.8 265.7 Price Since the stock market closes on weekends, Table 1 only shows stock prices during weekdays. Please answer the following questions based on the given information. (a) [12 Points) Apply the moving average (MA) model with a three-day lag (9 = 3) and a five-day lag (q= 5) to forecast Apple Inc.'s stock price in the following three trading days (i.e., its stock price on November 19, 20 and 21). (Hint: calculate the stock price on November 19 first, and then use the estimated stock price of November 19 to forecast the stock price on November 20.) (ROUND TO ONE DECIMAL) (b) [9 Points] Known an autoregressive (AR) model with a two-day lag as follows: t,AR = 3.7 +0.9X+-1 + 0.1X7-2 Use the above AR model to forecast the stock prices of Apple Inc. on (3 pts) November 19, (3 pts) November 20, and (4 pts) November 21. Note that t represents the number of trading days instead of the actual calendar date. (Hint: calculate the stock price on November 19 first, and then use the estimated stock price of November 19 to forecast the stock price on November 20.) (c) (13 Points] Calculate MAPE for the MA(3), MA(5) and AR(2) model (3 pts each) given that the true value on November 19, 20 and 21 are 267.3, 267.8 and 268.6 respectively. (4 pts) Then conclude which model gives the best forecasting results based on MAPE. (NO SPECIFIC ROUNDING RULE)
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