Business Forecasting 6th Edition by Holton Wilson, Barry Keating, John Solutions

Exercise 3

Apply a model suggested by the correlogram plot and calculate the RMSE for your forecast of the four quarters of 2006. Recall that the actual 2004 sales (in thousands) were: Quarter 1-3,441,000; Quarter 2-3,716,000; Quarter 3-3,856,000; Quarter 4-4,930,000.