(a) Plot the data on U.S. general aviation shipments.
Plot A Plot B
(b) Describe the patter and discuss possible causes. Hint: What economic factors affect major capital Investments? (You may select more than one answer. Click the box with a check mark for the correct answer and double click to empty the box for the wrong answer.)
The factors affecting major capital investments:
2 Business cycles
Interest rates
2 Foreign demand
Forecasting
(c) Would a fitted trend be helpful? Explain.
(d) Fit a moving average (e.g., period 2) to the data. Is it useful?
(e) Make a forecast for 2016 using a method of your choice (including a judgment forecast). Justify your method. (Round your answer to the nearest whole number.)
The two year moving average forecast for 2016 Is
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In moving average forecasting technique, the forecast is equal to the mean of all past data. It is denoted by MA and formulae for calculation is given below.
For 3 year moving average which is denoted by MA (3) the formula simplifies to:
.PNG)
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