Discuss the below:
The closing value of the AMEX Airline Index for each trading day during a 1-year period is given
a. How well does the moving average method track this series when the span is 4 days; when the span is 12 days?
b. Using the more appropriate span, forecast the closing value of this index on the next trading day with the moving average method.
Then use the StatTools solution provided to response the following questions:
Q1. Which is the better predictor - the Four Day Span or the Twelve Day Span?
Q2. Justify your reason for selecting a Four Day or Twelve Day Span.
Instructions
1. It is important that you use the Excel template provided with this assignment to answer this problem