Question: in R 1 - Create a training set for Australian takeaway food turnover ( aus _ retail ) by withholding the last four years as
in R
Create a training set for Australian takeaway food turnover ausretail by withholding the last four years as a test set.
Fit all the appropriate simplebenchmark forecasting methods to the training set and forecast the periods covered by the test set. Justify your model selection. You include any plots to justify your answer.
Compute the accuracy of your forecasts based on RMSE, MAE, MAPE, and MASE. Which method does best? Explain your answer.
Do the residuals from the best method resemble white noise? Explain your answer.
Run LjungBox test with lag to prove your answer in question
Extend the experiment for the best method you obtained in question with a crossvalidation method. Stretch with a minimum length of growing by each step. Use the same forecast horizon for the holdout method. Evaluate the model using RMSE, MAE, MAPE, and MASE. Compare the results with the holdout method. Which method give a better accuracy?
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