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Please answer the question below based on pictures I attached. 1.Model comparison Compare the three models estimated so far, moving average, smoothing model and decomposition.

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Please answer the question below based on pictures I attached.

1.Model comparison

Compare the three models estimated so far, moving average, smoothing model and decomposition. Based on the forecasting error measurement, which model is the best? Re-run the best model and forecast for the next two years. Show the forecast.

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Component Analysis for Revenue Multiplicative Model Original Data Detrended Data 30 30000 20 20000 10 10000 -10 22 44 66 110 22 44 66 110 Index Index Seasonally Adjusted Data Seas. Adj. and Detr. Data 5000 30000 20000 -2500 10000 -5000 22 44 66 110 22 44 66 110 Index IndexMoving Average Plot for Revenue 35000 Variable Actual Fits 30000 Forecasts 95.0% PI 25000 Moving Average Length 4 20000 Accuracy Measures Revenue MAPE 6 MAD 955 15000 MSD 2360987 10000 5000 O 1 11 22 33 44 55 66 77 88 99 110 IndexSmoothing Plot for Revenue Single Exponential Method 35000 Variable Actual 30000 Fits Smoothing Constant 25000 a 0.738697 Accuracy Measures 20000 MAPE 4 Revenue MAD 701 MSD 1749221 15000 10000 5000 1 11 22 33 44 55 66 77 88 99 110 Index

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