Question

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

9.3 , 9.2 , 9.3 , 9.5 , 9.7 , 9.7 , 10 , 10.5 , 9.8 , 9.7 , 9.8 , 9.7 , 9.8 , 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	ERROR2
1	9.3
2	9.2
3	9.3
4	9.5
5	9.7
6	9.7
7	10
8	10.5
9	9.8
10	9.7
11	9.8
12	9.4

MONTH	TIME - SERIES VALUE	4 MONTH MOVING AVERAGE	ERROR2
1	9.3
2	9.2
3	9.3
4	9.5
5	9.7
6	9.7
7	10
8	10.5
9	9.8
10	9.7
11	9.8
12	9.4

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.

Answer 1