### Matter whether the inflation is expected or unexpected

##### Reference no: EM1321592

Q. Consider the file P02_37.xlsx, elucidate which contains total monthly US retail sales data. While retaining the final 6 months of observations for validation purposes, use the method of moving averages with a carefully chosen span to forecast US retail sales in the next yr. Comment on the performance of your model. Illustrate what makes this time series more challenging to forecast?

Q. Calvin Coolidge once said that "inflation is repudiation." Illustrate what might have he meant by this? DO you agree? Elucidate why or elucidate why not? Does it matter whether the inflation is expected or unexpected?

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