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Question 1. CoastCoInsurance is interested in developing a forecast of larceny thefts in the United States. Download the spreadsheet for the available data. Year Larcency
Question 1.CoastCoInsurance is interested in developing a forecast of larceny thefts in the United States.Download the spreadsheet for the available data.
Year | Larcency Thefts* |
1 | 8,151 |
2 | 8,348 |
3 | 9,263 |
4 | 9,978 |
5 | 10,271 |
6 | 9,906 |
7 | 9,983 |
8 | 10,578 |
9 | 11,137 |
10 | 11,194 |
11 | 11,143 |
12 | 10,713 |
13 | 10,592 |
14 | 10,926 |
15 | 11,257 |
16 | 11,500 |
17 | 11,706 |
18 | 11,872 |
*Data in thousands
- Plot this series in a time series plot and make a naive forecast for years 2 through 19.
- Plot actual and forecast values of the series for the years 1 through 19. (You will not have an actual value for year 19 or a forecast value for year 1.)
- Calculate the RMSE and MAD for years 2 through 18. On the basis of these measures and what you see in the plot, what do you think of your forecast? Explain.
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