Question: An investor is interested in developing a forecasting model for Company A' stock price and has collected the quarterly revenue data from 2010 to 2020.

An investor is interested in developing a forecasting model for Company A' stock price and has collected the quarterly revenue data from 2010 to 2020.

Identify the moving average forecasting model among k = 2,3,4 and 5.

Identify the best exponential smoothing model among = 0.2, 0.25, 0.3, 0.35 and 0.4.

Develop a linear regression model without seasonal pattern.

Develop a linear regression model with seasonal pattern and without trend.

Develop a linear regression model with both seasonal pattern and trend.

Compare the final models developed in all 5 questions using the performance metrics.

Which of these models can be used to forecast the revenue for the next 4 quarters? Calculate and visualize the forecasts from the corresponding models.

Revenue

15683

13499

15700

20343

26741

24667

28571

28270

46333

39186

35023

35966

54512

43603

35323

37472

57594

45646

37432

42123

74599

58010

49605

51501

75872

50557

42358

46852

78351

52896

45408

52579

88293

61137

53265

62900

84310

58015

53809

64040

91819

58313

59685

64698

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!