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Shown here are the consumer price indexes (CPIs) for housing for the years 1995 through 2018 from the Bureau of Labor Statistics Data website. Use
Shown here are the consumer price indexes (CPIs) for housing for the years 1995 through 2018 from the Bureau of Labor Statistics Data website. Use the data to answer the following questions. a. Compute the 4-year moving average to forecast the CPIs from 1999 through 2018. b. Compute the 4-year weighted moving average to forecast the CPIs from 1995 through 2014. Weight the most recent year by 4, the next most recent year by 3, the next year by 2, and the last year of the four by 1. c. Determine the errors for parts (a) and (b). Compute MSE for parts (a) and (b). Compare the MSE values and comment on the effectiveness of the moving average versus the weighted moving average for these data. Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Housing CPI 148.5 152.8 156.8 160.4 163.9 169.6 176.4 180.3 184.8 189.5 195.7 203.2 Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Housing CPI 209.6 216.3 217.1 216.3 219.1 222.7 227.4 233.2 238.1 244.0 251.2 258.5
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