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Consider the Following Time Series Representing Home Satellite Dish Installations

Question 47

Essay

Consider the following time series representing home satellite dish installations by Big Boys Appliances over the past twelve months:  Month  Installations  Month  Installations  Month  Installations  January 14 May 22 Sept. 38 February 19 June 29 October 30 March 22 July 33 November 29 April 25 August 35 December 42\begin{array}{lccccc}\text { Month }&\text { Installations }&\text { Month }&\text { Installations }&\text { Month }&\text { Installations }\\\text { January } & 14 & \text { May } & 22 & \text { Sept. } & 38 \\\text { February } & 19 & \text { June } & 29 & \text { October } & 30 \\\text { March } & 22 & \text { July } & 33 & \text { November } & 29 \\\text { April } & 25 & \text { August } & 35 & \text { December } & 42\end{array}

A.Using linear regression, determine the forecast for the upcoming six months.
B.Using Holt's method, determine the forecast for the upcoming six months.Assume that a smoothing constant of .40 is used for the time series level and a smoothing constant of .20 is used for the
time series trend.
C..Which technique, linear regression or Holt's using the smoothing constants given in part B, gives the lower mean squared error?
D.Why should the result you found in part C not surprise you?

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A.(Jan - 41, Feb - 43, March - 45, Apri...

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