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In: Statistics and Probability

Corporate triple-A bond interest rates for 12 consecutive months follow. 9.6 9.5 9.2 9.7 9.8 9.7...

Corporate triple-A bond interest rates for 12 consecutive months follow.

9.6 9.5 9.2 9.7 9.8 9.7 9.8 10.6 9.9 9.7 9.4 9.4

b. Develop three-month and four-month moving averages for this time series (to 2 decimals). If your answer is zero enter “0”.

Month Time-Series
Value
3-Month Moving
Average Forecast
Total
Month Time-Series
Value
4-Month Moving
Average Forecast
Total

Compute MSE (to 2 decimals).

MSE (3-Month)
MSE (4-Month)

c. What is the moving average forecast for the next month (to 2 decimals)? Use the more accurate forecast.

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