Question
Develop a forecast for both unemployment rates for June (Boston) and July (United States) 2021.You must test at least three different forecasting methods (no more
Develop a forecast for both unemployment rates for June (Boston) and July (United States) 2021.You must test at least three different forecasting methods (no more than two iterations of a same method (e.g. you can do 3 month and 6 month Moving Average, but you must test at least one other method).Pick the one you think is the best, and explain why you picked it.Provide the forecast unemployment rate for July for U.S. and June for Boston.Does the forecast "make sense" to you?
At the very least you should answer the following questions:
1. Which criteria you used to choose the forecast (e.g. RMSE, MAD, etc.)?How did different models perform on this criteria (i.e. report actual numbers)?What was the forecast of each model?
2. What is your final forecast based on the model(s)?
3. Do you think it is an under-estimate, over-estimate or fairly reasonable?If you think the rate would be something other than what your method produces, what is your predicted unemployment rate for each?Explain your choice.
What is your final forecast (using the model(s) and/or your subjective judgment) to two decimal points (e.g. 3.11)?Most accurate forecast (not going over the actual rate in a case of a tie) will receive a prize once the actual June/July unemployment if announced by the Bureau of Labor Statistics.
Step by Step Solution
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Step: 1
To develop a forecast for unemployment rates you can consider the following methods 1 Moving Average ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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