Problem Set 7 The Olympia Paper Company would like to develop a prediction model that can be used to give point forecasts and prediction intervals of weekly paper towel sales over 100,000 rolls (sales are measured in units of 10,000 rolls) With a reliable model, OPC will be able to more effectively plan its production schedule, plan its budget, and estimate requirements for producing and storing this product Data y 15, 14, 15, 16, 16, 14, 14, 14, 16, 17, 16, 17, 18, 18, 17, 18, 18, 19, 18, 16, 14, 15, 16, 14, 12, 12, 11, 12, 13, 12, 11, 10, 10, 12, 12, 13, 12, 10, 10, 10, 9, 8, 7 8 9 9 9 8 8 9 9 9 10 11 10 8 7 5 2 1 1 1 0 1 2 4 2 5 7 8 8 8 8 9 7 8 10 10 9 11 11 13 14 13 13 13 12 12 12 11 11 11 12 12 12 11 13 14 14 14 14 14 16 17 16 15 16 15 14 14 15 15 14 14 15 17 17 17 15 16 Q2 Use the paper towels data to illustrate the formula for , the sample autocorrelation (SAC) at lag k Use Stata as a fancy calculator to solve for the SAC at lags 1 to k in your answer, provide a listing and a graph of the sample autocorrelations Are any of the sample autocorrelations statistically significant Why is this information important

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Problem Set 7 The Olympia Paper Company would like to develop a prediction model that can be used to give point forecasts and prediction intervals

Problem Set 7

The Olympia Paper Company would like to develop a prediction model that can be used to give point forecasts and prediction intervals of weekly paper towel sales over 100,000 rolls (sales are measured in units of 10,000 rolls). With a reliable model, OPC will be able to more effectively plan its production schedule, plan its budget, and estimate requirements for producing and storing this product.

Data:

y
15,
14,
15,
16,
16,
14,
14,
14,
16,
17,
16,
17,
18,
18,
17,
18,
18,
19,
18,
16,
14,
15,
16,
14,
12,
12,
11,
12,
13,
12,
11,
10,
10,
12,
12,
13,
12,
10,
10,
10,
9,
8,
7
8
9
9
9
8
8
9
9
9
10
11
10
8
7
5
2
-1
-1
-1
0
1
2
4
2
5
7
8
8
8
8
9
7
8
10
10
9
11
11
13
14
13
13
13
12
12
12
11
11
11
12
12
12
11
13
14
14
14
14
14
16
17
16
15
16
15
14
14
15
15
14
14
15
17
17
17
15
16

Q2. Use the paper towels data to illustrate the formula for , the sample autocorrelation (SAC) at lag k. Use Stata as a fancy calculator to solve for the SAC at lags 1 to k - in your answer, provide a listing and a graph of the sample autocorrelations. Are any of the sample autocorrelations statistically significant? Why is this information important?