economic forecasting- solve using Ratio-to-Moving Average method

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Must show all Excel work, answer all parts of the question, and write necessary explanations to earn full points. You have to use Excel to solve this numerical problem (project).

The following table gives monthly data for four years in million tons of consumption of ice cream in a country. Plot the series and comment on the visible seasonality and trend. Estimate the centered moving averages for this monthly series. Plot CMA and comment. Next, estimate the S,I component which only includes seasonal and irregular movements of the series. Then find the seasonal indexes for the twelve months removing the irregular component. Find the de-seasonalized levels for the series. Plot De-seasonalized Y and comment. Then estimate the trend values for the four sample years and the 12 months of the year 2015 using linear regression. Finally, make the forecast for the 12 months of 2015 using the Ratio-to-Moving Average method to capture the Trend and Seasonal patterns, using Excel. Plot the forecasted values for the 60 periods including 12 months of the year 2015. Plot the errors for in-sample periods and calculate RMSE. Comment on the error plot with respect to the existence of pattern or lack of visible pattern.

Month/Year

2011

2012

2013

2014

Jan

840

900

1150

1350

Feb

860

920

1175

1380

Mar

880

950

1205

1415

Apr

950

1090

1280

1525

May

1050

1230

1390

1685

Jun

1150

1360

1510

1845

Jul

1200

1440

1580

1925

Aug

1140

1350

1500

1835

Sep

1100

1310

1450

1770

Oct

1050

1250

1400

1685

Nov

900

1100

1260

1445

Dec

880

1070

1230

1415

(Hint: First, you have to type the data in column form in Excel)