Shipments of Household Appliances. The time plot in Figure 18 . 31 shows the series of quarterly shipments (in million dollars) of US household appliances between 1985 and 1989 (dataare available in ApplianceShipments.csv, data courtesy of Ken Black). If we compute the autocorrelation of the series, which lag (>0) is most likely to have the largest coefficient (in absolute value)? Create an ACF plot and compare with your answer.

FIGURE 18 . 31 QUARTERLY SHIPMENTS OF US HOUSEHOLD APPLIANCES OVER FIVE YEARS

Transcribed Image Text:

4800- 4600 4400 4200 4000- 1985 1986 1987 1988 1989 Time