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Please answer the questions using the excel sheet attached. The direction are listed above the questions. When using a moving average forecasting models, the first
Please answer the questions using the excel sheet attached. The direction are listed above the questions.
- When using a moving average forecasting models, the first certain periods are for initializations. For example for a 3 month moving average, the first three months' data are used for initialization, There would be no forecasts for the first 3 months. Your forecast starts at the fourth month.
- After you comparing the MSEs and choose which one is better, you are going to use what you choose to forecast the period in the future. Do not use the built-in "Forecast" function.
1. is about using the moving average method to forecast the interest rate.
- When you do regression for a time series, it is always better to use the numbered periods (1, 2,3,...) not the labels (2001, 2002, 2003...) as the x values.
- The last question asks for the year, not the number of period.
2. is about using regression to analyze a time series.