Answer Happy

Corporate triple-A bond interest rates for 12 consecutive months follow. 9.5 9.4 9.4 9.6 9.8 9.7 9.8 10.6 9.9 (a) Construct a time series plot. 11.0- 10.5 10.0 9.5 9.0 8,5 8.0 7.5 7.0- 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Month 11.0 10.5+ 10.0 8.5 8.01 7.5+ 7.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Month What type of pattern exists in the data? The data appear to follow a horizontal pattern. The data appear to follow a seasonal pattern.. The data appear to follow a cyclical pattern. 9.5 9.0 9.8 9.7 9.7 11.0 T 10.5 10.0 9.5 9.0 8.5+ 8.0 7.5 7.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Month 11.0 10.5 10.0 9.5 9.0 8.5 8.0- 75- 7.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Month
What type of pattern exists in the data? The data appear to follow a horizontal pattern. O The data appear to follow a seasonal pattern. O The data appear to follow a cydical pattern. O The data appear to follow a trend pattern. (b) Develop three-month and four-month moving averages for this time series. (Round your answers to two decimal places.) Month Time Series 3-Month Moving Value 4-Month Moving Average Forecast Average Forecast 1 9.5 94 9.4 9.6 9.8 9.7 7 9.8 8 10.6 9 9.9 10 9.8 11 9.7 12 9.7 Does the three-month or four-month moving average provide more accurate forecasts based on MSE? Explain. The three-month moving average provides more accurate forecasts, because its MSE is smaller than that of the four-month moving average. The three-month moving average provides more accurate forecasts, because its MSF is larmer than 2 3 4 5 6
Does the three-month or four-month moving average provide more accurate forecasts based on MSE? Explain. The three-month moving average provides more accurate forecasts, because its MSE is smaller than that of the four-month moving average. The three-month moving average provides more accurate forecasts, because its MSE is larger than that of the four-month moving average. The four-month moving average provides more accurate forecasts, because its MSE is smaller than that of the three-month moving average. The four-month moving average provides more accurate forecasts, because its MSE is larger than that of the three-month moving average. (c) Using the more accurate approach, what is the moving average forecast for the next month? (Round your answer to two decimal places.)