Solve the forecast model

Assignment Help Econometrics
Reference no: EM131256

Australian Bureau of Statistics (ABS) provides retail data for different groups and different states as well as the aggregate numbers.

You, as an econometrics expert, need to analyse, generate and assess forecasts for monthly sales retail turnover for the rest of 2013.

After consulting with your peers, you decide to consider three models/methods for applicationto this dataset to generate forecasts.

(i) Perform an exploratory analysis on the entire dataset and discuss the important aspects of the data. Show all RELEVANT output (e.g. graphs, tables).

(ii) Choose a suitable decomposition model for model B while clearly motivating your choiceusing your answer in part (i) and any other relevant information i.e. choose between a multiplicative OR an additive model.

(iii) Choose a suitable model C while again clearly motivating your choice*.

You have to use at least 6 years as the in-sample period, and yourhold-out sample for forecasting should have at least 12 points.

(iv) Clearly present and discuss the trend-cycle, seasonal and error components in the in-sample data, as assessed by model B.Contrast these components between the models B and C if appropriate.

(v) Choose a model form forthe trend component (one for Model B and also for model C, but only if appropriate) and clearly and properly justify your choice.

(vi) Discuss and compare how well, or otherwise,the models A, B (including trend as in (v)) and C fit the data in the in-sample period. Use statistical tests if appropriate.

(vii) Forecast the hold-out year, of monthly turnover data using Models A-C, using only the chosen in-sample period. Provide a table of these forecasts as well as a graph, together with the actual turnover for the last 12 months.

(viii) Assess the accuracy of each model and compare the models for forecast performance in the appropriate ways.Identify the best forecasting model and why you chose it as best.

(ix) Discuss why you think the ‘best' model beat the other two models AND/OR why there was (or wasn't) any disagreement between forecast accuracy measures.

(x) Provide 95% interval forecasts for sales in the last 12 month for each model. Clearly present the method you used to obtain such interval estimates. As much as you can, discuss, interpret and compare these intervals.Are they accurate? Is one model better than the others here?

(xi) Choose a forecast model from A-C, motivating your choice. Then, update it with the latest available data, and then generate both point and 95% interval forecasts for the rest of 2013.Present these in an appropriate manner. Further, discuss how accurate you think these 2013 forecasts might turn out to be, with justification.

(xii) Prepare an executive summary**outlining and summarising your analysis, providing your forecasts in a form suitable for the evening news. Use layman's terms, since the majority of the viewers did not take the advanced forecasting course and do not understand statistical notation.

(xiii) Write up to a 0.5 pagestatement outlining the state of retail sector in Australia and your expectations for the rest of 2013.Write this like a certified statement from an expert to the governor of the Reserve Bank of Australia (RBA), so it can be used next time when RBA makes a decision on interest rates.

Reference no: EM131256

Questions Cloud

Time value of money related finance methods : Norman Harvey Bank in order to immediately invest the entire $20,000 into the West Bank term deposit account being offered.
Social and environmental accountability : AGL has published an annual sustainability report since 2004 to communicate sustainability performance in the areas of customers, community, people, economic, climate change and environment.
Probability and statistics : The tubes produced by a machine are defective. If six tubes are inspected at random , determine the probability that.
Perky pies : Information systems to adequately manage supply both up and down stream.
Solve the forecast model : Solve the forecast model
calculate the series for nominal gdp : Calculate and Plot using a spreadsheet (like Ms Excel) the series for Nominal GDP

Reviews

Write a Review

 

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd