Consider the quarterly sales data: data1 = {10, 31, 43, 16, 11, 33, 45, 17, 14, 46, 50, 21, 19, 41, 55,25}. Forecast the volatility for the next quarter

a) using EWMA with Consider the quarterly sales data: data1 = {10, 31, 43, 16, 11, 33, 45, 17, 14, 46, 50, 21, 19, 41, 55, 25}. Forecast the volatility for the next quarter a) using EWMA with = 0:92

b) using GARCH(1,1) with w= 0:000002 , = 0:04 and = 0:92:

c) comment on your results by comparing a) and B) Proportional change will be taken as return , that is (An+1-An)/An