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In: Statistics and Probability

Gondor is facing a pandemic of Black Breath. As opposed to the previous incidences, this time...

Gondor is facing a pandemic of Black Breath. As opposed to the previous incidences, this time the disease develops slowly in the body and in that phase the infected people are also contagious. This led to an unprecedented number of infections. The data shows the number of infected people by day. Although the hands of the king are the hands of a healer, the numbers are beyond his capacity. He is worried and he gave you the task of predicting the number of cases for next 7 days.

a.) Draw a graph of the data in Excel(Line of Scatter, your choice). How does it look like, which methods would be suitable to forecast?

b.) A wise man told you that if a variable is exponentially increasing, then the logarithm of that variable would have a linear trend. With that information, you decided to take a scatter of the logarithm of number of cases. (log(X)). You can also do the same by changing the scale of the vertical axis to log scale.(Using format axis in the graph, please Google if you don't know). You are not convinced that fitting a trend line would bring a good forecast. Why would you think so? Why fitting a trend line on logarithm may not generate good forecasts in this case?

c.) Growth rate of a variable is defined as: (X(t+1)-X(t))/X(t) Therefore, if you have a forecast for growth rate g, than you can generate a forecast for the variable using X(t+1)=X(t) x (1+g)

Calculate the daily growth rate, and scatter the growth rate of cases. How does it look like?

d.) Forecast the number of cases for the next 7 days. Choose the method based on your judgement on previous graphs.

Day Gondor Cases of Black Breath
1 85
2 121
3 166
4 228
5 282
6 401
7 525
8 674
9 1,231
10 1,695
11 2,277
12 3,146
13 5,232
14 6,391
15 7,988
16 9,942
17 11,826
18 14,769
19 18,077
20 21,571
21 25,496
22 29,909
23 35,480
24 42,058
25 50,105
26 57,786
27 65,719
28 73,232
29 80,110
30 87,956
31 95,923

Solutions

Expert Solution

There is a disease going around in the country. As opposed to the previous cases, this time the disease develops slowly in the body and in that phase the infected people are also contagious. This led to an unprecedented number of infections. The data shows the number of infected people by day. As the king is worried, he gave you the task of predicting the number of cases for next 7 days.

Day Number of Cases
1 85
2 121
3 166
4 228
5 282
6 401
7 525
8 674
9 1,231
10 1,695
11 2,277
12 3,146
13 5,232
14 6,391
15 7,988
16 9,942
17 11,826
18 14,769
19 18,077
20 21,571
21 25,496
22 29,909
23 35,480
24 42,058
25 50,105
26 57,786
27 65,719
28 73,232
29 80,110
30 87,956
31 95,923

a.) Draw a graph of the data in Excel. How does it look like, which methods would be suitable to forecast?

b.) A wise man told you that if a variable is exponentially increasing, then the logarithm of that variable would have a linear trend. With that information, you decided to take a scatter of the logarithm of number of cases. (log(X)). You can also do the same by changing the scale of the vertical axis to log scale. You are not convinced that fitting a trend line would bring a good forecast. Why would you think so? Why fitting a trend line on logarithm may not generate good forecasts in this case?

c.) Growth rate of a variable is defined as: (X(t+1)-X(t))/X(t) Therefore, if you have a forecast for growth rate g, than you can generate a forecast for the variable using X(t+1)=X(t) x (1+g). Calculate the daily growth rate, and scatter the growth rate of cases. How does it look like?

d.) Forecast the number of cases for the next 7 days. Choose the method based on your judgement on previous graphs.

Expert Answer

  • Mira Chavare answered this

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    119 answers

    1)

    a.) Draw a graph of the data in Excel. How does it look like, which methods would be suitable to forecast?

    2)

    Day Number of Cases LN(Day) LN(Number of cases) Growth
    1 85 0 4.442651
    2 121 0.693147 4.795791 0.423529
    3 166 1.098612 5.111988 0.371901
    4 228 1.386294 5.429346 0.373494
    5 282 1.609438 5.641907 0.236842
    6 401 1.791759 5.993961 0.421986
    7 525 1.94591 6.263398 0.309227
    8 674 2.079442 6.51323 0.28381
    9 1,231 2.197225 7.115582 0.826409
    10 1,695 2.302585 7.435438 0.376929
    11 2,277 2.397895 7.730614 0.343363
    12 3,146 2.484907 8.053887 0.381643
    13 5,232 2.564949 8.562549 0.663064
    14 6,391 2.639057 8.762646 0.221521
    15 7,988 2.70805 8.985696 0.249883
    16 9,942 2.772589 9.204523 0.244617
    17 11,826 2.833213 9.378056 0.189499
    18 14,769 2.890372 9.600286 0.248858
    19 18,077 2.944439 9.802396 0.223983
    20 21,571 2.995732 9.979105 0.193284
    21 25,496 3.044522 10.14628 0.181957
    22 29,909 3.091042 10.30591 0.173086
    23 35,480 3.135494 10.47672 0.186265
    24 42,058 3.178054 10.6468 0.1854
    25 50,105 3.218876 10.82188 0.191331
    26 57,786 3.258097 10.9645 0.153298
    27 65,719 3.295837 11.09314 0.137282
    28 73,232 3.332205 11.20139 0.11432
    29 80,110 3.367296 11.29116 0.093921
    30 87,956 3.401197 11.38459 0.09794
    31 95,923 3.433987 11.4713 0.090579

    Scatter of the logarithm of number of cases. (log(X)).

    We are not convinced that fitting a trend line would bring a good forecast.

    because it might not be able to model the specific curve that exists in your data.

    Hence fitting a trend line on logarithm may not generate good forecasts in this case.

    C) Daily groeth rate

    Day Growth
    2 0.423529
    3 0.371901
    4 0.373494
    5 0.236842
    6 0.421986
    7 0.309227
    8 0.28381
    9 0.826409
    10 0.376929
    11 0.343363
    12 0.381643
    13 0.663064
    14 0.221521
    15 0.249883
    16 0.244617
    17 0.189499
    18 0.248858
    19 0.223983
    20 0.193284
    21 0.181957
    22 0.173086
    23 0.186265
    24 0.1854
    25 0.191331
    26 0.153298
    27 0.137282
    28 0.11432
    29 0.093921
    30 0.09794
    31 0.090579

    It has decline trend hence

    d.) Forecast the number of cases for the next 7 days. Choose the method based on your judgement on previous graphs.

    Answer: growth has decline trend which we will predict using fit linear model and we get

    g(D)=0.4802-0.01256*D

    where D= Day

    this estimated growth we will use to forecsat # of cases for next 7 days using

    X(t+1)=X(t) x (1+g).

    Day g=est(g(t)) X(t+1)=X(t) x (1+g).
    32 0.078024 103407
    33 0.065456 110176
    34 0.052888 116003
    35 0.04032 120680
    36 0.027752 124029
    37 0.015184 125913
    38 0.002616 126242

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