Assume you are a leader at Walmart and need to figure out the demand for milk (a perishable consumable) for October for all of Dallas, Texas. Your supervisor has tasked you with looking at six months of data to create your forecast.

Predict if the data is likely heteroscedastic or homoscedastic. Why?

What do you think are the critical factors to examine in making this prediction?

What casual relationships do you think exist and why is this important?

How important do you think this forecast is to the Walmart stores?

Describe one way the company for which you work (or with which a friend/family member works) might evaluate the critical factors and casual relationships in making a forecast.