(b) Develop three-month and four-month moving averages for this time series. (Round your answers to two decimal places.) Month Time Series Value 3-Month Moving Average Forecast 4-Month Moving Average Forecast 1 2 3 4 5 6 7 8 9 10 11 12 9.5 9.3 9.5 9.7 9.8 9.8 9.9 10.6 9.9 9.8 9.7 9.7 [ Does the three-month or four-month moving average provide more accurate forecasts based on MSE? Explain. O The four-month moving average provides more accurate forecasts, because its MSE is larger than that of the three-month moving average. The three-month moving average provides more accurate forecasts, because its MSE is smaller than that of the four-month moving average. O The four-month moving average provides more accurate forecasts, because its MSE is smaller than that of the three-month moving average. O The three-month moving average provides more accurate forecasts, because its MSE is larger than that of the four-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.)

MATLAB: An Introduction with Applications
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ISBN:9781119256830
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Chapter1: Starting With Matlab
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Corporate triple-A bond interest rates for 12 consecutive months follow.
9.5 9.3 9.5 9.7 9.8 9.8 9.9
(a) Construct a time series plot.
10.6 9.9 9.8 9.7 9.7
Transcribed Image Text:Corporate triple-A bond interest rates for 12 consecutive months follow. 9.5 9.3 9.5 9.7 9.8 9.8 9.9 (a) Construct a time series plot. 10.6 9.9 9.8 9.7 9.7
(b) Develop three-month and four-month moving averages for this time series. (Round your answers to two decimal places.)
Time Series
Value
3-Month Moving
Average Forecast
4-Month Moving
Average Forecast
Month
1
2
3
4
5
6
7
8
9
10
11
12
9.5
9.3
9.5
9.7
9.8
9.8
9.9
10.6
9.9
9.8
9.7
9.7
Does the three-month or four-month moving average provide more accurate forecasts based on MSE? Explain.
O The four-month moving average provides more accurate forecasts, because its MSE is larger than that of the three-month moving average.
O The three-month moving average provides more accurate forecasts, because its MSE is smaller than that of the four-month moving average.
O The four-month moving average provides more accurate forecasts, because its MSE is smaller than that of the three-month moving average.
O The three-month moving average provides more accurate forecasts, because its MSE is larger than that of the four-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.)
Transcribed Image Text:(b) Develop three-month and four-month moving averages for this time series. (Round your answers to two decimal places.) Time Series Value 3-Month Moving Average Forecast 4-Month Moving Average Forecast Month 1 2 3 4 5 6 7 8 9 10 11 12 9.5 9.3 9.5 9.7 9.8 9.8 9.9 10.6 9.9 9.8 9.7 9.7 Does the three-month or four-month moving average provide more accurate forecasts based on MSE? Explain. O The four-month moving average provides more accurate forecasts, because its MSE is larger than that of the three-month moving average. O The three-month moving average provides more accurate forecasts, because its MSE is smaller than that of the four-month moving average. O The four-month moving average provides more accurate forecasts, because its MSE is smaller than that of the three-month moving average. O The three-month moving average provides more accurate forecasts, because its MSE is larger than that of the four-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.)
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