Question: Develop an associative forecasting model using the data of two variables that you that will have some kind of a relationship, but it is not
Develop an associative forecasting model using the data of two variables that you that will have some kind of a relationship, but it is not too obvious. One of the variables will the predictor variable, ie it will be used to predict the other variable. Choose suitable variables that can give you a workable associative forecasting model. The best approach
this assignment is to search for time series data for each of the variables, then try to match them according to the corresponding time, as shown below:
Time series variable A from one source
Time series variable B from a different source
Associative Forecasting A vs B
From your forecasting model determine the following:
a What is the value of the coefficient of correlation? Does it appear to indicate a
high degree of association between the two variables?
b What is the value of r What is its interpretation?
c Do you think this is a good forecasting model? Explain.
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