EWMA time series question with plots and i have no idea what to do

timer Asked: Jul 21st, 2015

Question description

01020-303QuarterPercent Change

Edit Coordinates...(0,0)

x y graph


The plots to the left and right show exponentially weighted moving averages​ (EWMA) of the percentage change of a​ country's gross national product​ (GNP). The time series is quarterly for a​ five-year period. To the​ left, the weight w in the EWMA is




to the right. The EWMA in both cases is shown as a line and the surrounding data as dots. Complete parts a through c below.

01020-303QuarterPercent Change

Edit Coordinates...(0,0)

x y graph


(a) Which smoothing constant do you think produces a better summary of the underlying trend in the percentage changes in​ GNP?

The EWMA with



is better because it

captures less random variation.

(b) In the most recent quarter​ (the last data point in this​ series), the GNP was estimated to be



What would you​ forecast, having seen these​ plots, for GNP for the next​ quarter?

The GNP for the next quarter should be about



(Round to three decimal places as​ needed.)

Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors