Question:
Using the index (1985=100) on housing starts in the United States per year from 1986 to 1997 given in the table below, forecast the index for 1998 a three-year and a five year moving average. Which of your estimates is better if the actual index of housing starts in the United States for 1998 is 163?
Index of House Starts in the United States: 1986 to 19997 (with 1985=100)
1986 1987 1988 1989 1990 1991
116 122 121 121 111 97
1992 1993 1994 1995 1996 1997
113 125 146 142 156 162