Question: Develop two forecast models for the AmTrk ridership data ( as shown on next slide ) : first the linear model A , then the

Develop two forecast models for the AmTrk ridership data (as shown on next slide): first
the linear model A, then the non-linear model B with addition of the seasonality terms.
Model A: 0+t
Model B: 0+1*t +2*sin(2*pi*t/12)+3*cos(2*pi*t/12)
Plot AmTrk ridership data vs. time for the first 48 month with appropriate x-y coordinate
labeling. Graphically assess the long-term trend from the raw data. Build the multiple
regression model A x = b for Model A and Model B respectively based on the first 48 month
data. Compute {0,} and {0,1,2,3} using Matlab function A\b.
With the preceding forecast models predict the ridership for the next 6 month beyond
48th month since Jan 1991. Compare with the actual, calculate the monthly forecast errors,
and estimate the RMS (Root Mean Square) errors for a) three-month forecast, and b) six-month
forecast. What is your evaluation of the comparative forecast performance of Model A versus
Model B based on the RMS errors?

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