Take a look at the stationary time series plots in the diagram. Between the forecasting approaches ; M2, M4 and M8, which one will you use for each situation? Explain.

04 ymum, hayan Mo and 11 more Time Series Models Moving Average Only include the last M observations Compromise between cumulative and naive Underlying Model: X = a + where: & iid (p=0,02=V[e]) Forecasting Model: 1.141 el- M 110 101 106 XN M2 MA616) om 104 100 1090 2 12 512 100 100.5 99 100 97,0 98,3 90 104 101005975 99.0 9 101.00 90 102 103 1018 99.5 100.5 94 1040 1025 100,2100X 34 10 90 96 95.099.5 100.0 995 1 2 10 04 ymum, hayan Mo and 11 more Time Series Models Moving Average Only include the last M observations Compromise between cumulative and naive Underlying Model: X = a + where: & iid (p=0,02=V[e]) Forecasting Model: 1.141 el- M 110 101 106 XN M2 MA616) om 104 100 1090 2 12 512 100 100.5 99 100 97,0 98,3 90 104 101005975 99.0 9 101.00 90 102 103 1018 99.5 100.5 94 1040 1025 100,2100X 34 10 90 96 95.099.5 100.0 995 1 2 10