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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

  1. Plot this series in a time series plot and make a naive forecast for years 2 through 19.
  2. 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.)
  3. 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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