The file P12_24.xlsx contains the daily closing prices of Procter & Gamble stock for a one-year period. Use only the 2003 data to estimate the trend component of the random walk model. Next, use the estimated random walk model to forecast the behavior of the time series for the 2004 dates in the series. Comment on the accuracy of the generated forecasts over this period. How could you improve the forecasts as you progress through the 2004 trading days?
Answer to relevant QuestionsConsider the Consumer Price Index (CPI), which provides the annual percentage change in consumer prices. The data are in the file P02_19.xlsx. a. Find the first six autocorrelations of this time series.b. Use the results of ...Consider the average annual interest rates on 30-year fixed mortgages in the United States. The data are recorded in the file P02_21.xlsx.a. Specify one or more promising auto regression models based on autocorrelations of ...The closing value of the Dow Jones Industrial Average for each trading day during a one-year period is provided in the file P12_19.xlsx.a. Using a span of 2, forecast the price of this index on the next trading day with the ...Consider the poverty level data in the file S02_44.xlsx.a. Create a time series chart of the data. Based on what you see, which of the exponential smoothing models do you think should be used for forecasting? Why?b. Use ...The file S02_55.xlsx contains monthly retail sales of beer, wine, and liquor at U.S. liquor stores.a. Is seasonality present in these data? If so, characterize the seasonality pattern and then de-seasonalize this time series ...
Post your question