Home sales are often considered an important determinant of the future health of the economy. Thus, there is widespread interest in being able to forecast home sales (HS).
Quarterly data for HS are shown in the following table in thousands of units (c2p10) use excel data attached and forecastx add-in. Question is from textbook Forecasting and Predictive Analytics with Forecast XBarry Keating, J. Holton Wilson, John Solutions, Inc.
McGraw-Hill, 7th edition, 2018
a.Prepare a time-series plot of THS. Describe what you see in this plot in terms of trend and seasonality.
b.Calculate and plot the first 12 autocorrelation coefficients for HS. What does this autocorrelation structure suggest about the trend?