Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The accompanying dataset provides data on monthly unemployment rates for a certain region over four years. Compare 3- and 12-month moving average forecasts using the

image text in transcribedimage text in transcribedimage text in transcribed
The accompanying dataset provides data on monthly unemployment rates for a certain region over four years. Compare 3- and 12-month moving average forecasts using the MAD criterion. Which of the twe models yields better results? Explain. EH Click the icon to view the unemployment rate data. Find the MAD for the 3-month moving average forecast. MAD = {Type an integer or decimal rounded to three decimal places as needed.) Find the MAD for the 12-month moving average forecast. MAD=[ | (Type an integer or decimal rounded to thres decimal places as needed.) Which of the two models yields better results? Explain. Which of the two models yields better results? Explain. ) A. O B. The 3-month moving average forecast yields better results because its MAD is greater than that of the 12-month moving average forecast. The 3-month model is more sensitive to longer term trends. The 12-month moving average forecast yields better results because its MAD is greater than that of the 3-month moving average forecast. The 12-month model is more sensitive to longer term trends. The 12-month moving average forecast yields better results because its MAD is smaller than that of the 3-month moving average forecast. The 12-month model is less sensitive to longer term trends. The 3-month meving average forecast yields better results because its MAD is smaller than that of the 12-menth moving average forecast. The 3-month model is less sensitive to longer term trends. The quality of the results is about the same between the two models because the MAD of the 3-month forecast is equal to the MAD of the 12-month forecast. 42404 808 PM Unemployment tum Year Month Rate (%) 2011 Jan 201 1 Feb 2011 Mar 2011 Apr 9.1 2011 May 2011 Jun 2011 Jui 9.5 2011 Aug 9.6 2011 Sep 201 1 Oct 10.1 201 1 Nav 2011 Dec 2012 Jan 9.6 2012 Feb 99 2012 Mar 9.7 20 12 Apr 2012 May 9.4 2012 Jun 2012 Jui 20 12 Aug 2012 Sep 9.7 2012 Oct 905 2012 Nov 99 2012 Dec 9.4 20 13 Jan 20 13 Feb 9.2 2013 Mar 9.1 2013 Apr 9.1 2013 May 9.1 2013 Jun 9.1 2013 Jui 20 13 Aug 89 2013 Sep 2013 Oct 20 13 Nov 2013 Dec 2014 Jan 2014 Feb 2014 Mar 2014 Ap 79 2014 May 2014 Jun 8.1 2014 Jul 2014 Aug B.2 2014 Sep 2014 Oct 2014 Nay 2014 Dec

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Linear Algebra with Applications

Authors: Bernard Kolman, David Hill

9th edition

132296543, 978-0132296540

More Books

Students also viewed these Mathematics questions