Table P-18 contains the number of severe earthquakes (those with a Richter scale magnitude of 7 and

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Table P-18 contains the number of severe earthquakes (those with a Richter scale magnitude of 7 and above) per year for the years 1900-1999.
Table P-18 contains the number of severe earthquakes (those with

a. Use Minitab to smooth the earthquake data with moving averages of orders k = 5, 10, and 15. Describe the nature of the smoothing as the order of the moving average increases. Do you think there might be a cycle in these data? If so, provide an estimate of the length (in years) of the cycle.
b. Use Minitab to smooth the earthquake data using simple exponential smoothing. Store the residuals and generate a forecast for the number of severe earthquakes in the year 2000. Compute the residual autocorrelations. Does simple exponential smoothing provide a reasonable fit to these data? Explain.
c. Is there a seasonal component in the earthquake data? Why or why not?

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Business Forecasting

ISBN: 978-0132301206

9th edition

Authors: John E. Hanke, Dean Wichern

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