The U.S. Census Bureau tracks the median price for new home sales by month The median prices
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Question:
The U.S. Census Bureau tracks the median price for new home sales by month The median prices for April for the years 1990 to 2011 follow (U.S. Census Bureau site, April 16, 2012).
a. Construct a time series plot. Comment on any pattern you observe. Discuss some of the factors that may have resulted in this time series plot.
b. Given the time series plot in part (a), do you think the forecasting methods developed in this section are appropriate for this time series? Explain.
c. To forecast a value for April 2012, how much of the past data would you use?
Explain. a. b. c.
Trend Projection
We present two forecasting methods in this section that are appropriate for time series exhibiting a trend pattern. First, we show how simple linear regression can be us forecast a time series with a linear trend. Next we show how the curve-fitting capablity of regression analysis can also be used to forecast time series with a curvilinear onlinear trend.
Related Book For
Probability and Statistics for Engineers and Scientists
ISBN: 978-0495107576
3rd edition
Authors: Anthony Hayter
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