Setting k = 3,determine the simple moving average forecast for the year 2001.

Shiller Real Home Price Index

An index that measures changes in the price of residential properties, adjusted for inflation.

Simple Moving Average

A calculation that averages a set number of past data points to smooth out short-term fluctuations and highlight longer-term trends or cycles.

Pinpoint relevant prediction methodologies considering the trend and seasonality characteristics of the time series.

Verified Answer

Final Answer :

Year 2001 forecast = (126.2995915 + 119.4819042 + 113.0744612)/3 = 119.6186523 ≈ 120.

Learning Objectives

Pinpoint relevant prediction methodologies considering the trend and seasonality characteristics of the time series.