SCENARIO 16-13 Given Below Is the Monthly Time Series Data for U.S.retail

question 87

Short Answer

SCENARIO 16-13
Given below is the monthly time series data for U.S.retail sales of building materials over a specific year.
The results of the linear trend,quadratic trend,exponential trend,first-order autoregressive,second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the 1^st month is 0:
Linear trend model:

Quadratic trend model:
Third-order autoregressive::

Below is the residual plot of the various models:

-Referring to Scenario 16-13,if a five-month moving average is used to smooth this series,how many moving averages can you compute?

---

Definitions:

Output Levels

The quantities of goods and services produced by an economy over a specific time period.

Recessionary Gap

A situation where actual economic output is lower than the output that would be achieved at full employment, indicating underutilized resources.

Short-Run Aggregate Supply Curve

A graphical representation showing the relationship between the total production of goods and services and the price level for output in the short-run, acknowledging some input prices are fixed.

Nominal Wages

Wages that are paid to employees not adjusted for changes in price level, representing the amount of money received in the form of wages, before any deductions for taxes or other adjustments.