Corporate triple-A bond interest rates for 12 consecutive months follow. 9.5 9.4 9.5 9.6 9.8 9.8 9.9 10.6 9.9 9.7 9.6 9.6 (a) Construct a time series plot. What type of pattern exists in the data? The data appear to follow a trend pattern.The data appear to follow a cyclical pattern. The data appear to follow a horizontal pattern.The data appear to follow a seasonal pattern. (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 9.5 2 9.4 3 9.5 4 9.6 5 9.8 6 9.8 7 9.9 8 10.6 9 9.9 10 9.7 11 9.6 12 9.6 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 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.The three-month moving average provides more accurate forecasts, because its MSE is smaller than that of the four-month moving average. (c) Using the more accurate forecast, what is the moving average forecast for the next month? (Round your answer to two decimal places.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Question

Corporate triple-A bond interest rates for 12 consecutive months follow.

9.5

9.4

9.5

9.6

9.8

9.9

10.6

9.9

9.7

9.6

(a)

Construct a time series plot.

What type of pattern exists in the data?

The data appear to follow a trend pattern.The data appear to follow a cyclical pattern. The data appear to follow a horizontal pattern.The data appear to follow a seasonal pattern.

(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	9.5
2	9.4
3	9.5
4	9.6
5	9.8
6	9.8
7	9.9
8	10.6
9	9.9
10	9.7
11	9.6
12	9.6

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 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.The three-month moving average provides more accurate forecasts, because its MSE is smaller than that of the four-month moving average.

(c)

Using the more accurate forecast, what is the moving average forecast for the next month? (Round your answer to two decimal places.)

Expert Solution

Step 1 Introduction:

Each quarter includes three months, there are four quarters,

Data:

Graph:

The detailed explanations are provided below,

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.

Similar questions