The file P12_24.xlsx contains the daily closing prices of Procter & Gamble stock for a one-year period.

Question:

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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

Question Posted: