Question 3 The following ACF plots were produced for raw data of monthly sales of two different variables, A and B. a) Explain which variable is likely to be easier to forecast. (3 marks). b) Explain how your answer to part a) would change if these were residuals of an ARIMA model instead of "raw data of monthly sales". (3 marks). Variable A: 0.15- 0.10 - 0.05- 0.00 -0.05 - -0.10 - -0.15- 10 15 20 Variable B: 1.00 - 0.75- 0.50 - 0.25 - 0.00 12 18 24 lag [1M]
Question 3 The following ACF plots were produced for raw data of monthly sales of two different variables, A and B. a) Explain which variable is likely to be easier to forecast. (3 marks). b) Explain how your answer to part a) would change if these were residuals of an ARIMA model instead of "raw data of monthly sales". (3 marks). Variable A: 0.15- 0.10 - 0.05- 0.00 -0.05 - -0.10 - -0.15- 10 15 20 Variable B: 1.00 - 0.75- 0.50 - 0.25 - 0.00 12 18 24 lag [1M]
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter5: A Survey Of Other Common Functions
Section5.6: Higher-degree Polynomials And Rational Functions
Problem 1TU: The following fictitious table shows kryptonite price, in dollar per gram, t years after 2006. t=...
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Question
The following ACF plots were produced for raw data of monthly sales of two different variables, A and B.
-
a) Explain which variable is likely to be easier to forecast.
-
b) Explain how your answer to part a) would change if these were residuals of an
ARIMA model instead of “raw data of monthly sales”.
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