The following ACF plots were produced for raw data of monthly sales of two different variables, A and B.  Explain in detail which variable (A or B) is likely to be easier to forecast.

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter1: Fundamental Concepts Of Algebra
Section1.2: Exponents And Radicals
Problem 28E
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The following ACF plots were produced for raw data of monthly sales of two
different variables, A and B.
 Explain in detail which variable (A or B) is likely to be easier to forecast. 

 

Variable A:
0.15-
0.10-
0.05-
0.00
-0.05-
-0.10-
-0.15-
1.00-
Variable B:
0.75-
0.50 -
0.00
0.25-
0
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Ś
I
I
I
I
I
I
12
10
I
I
lag [1M]
18
15
I
I
I
24
20
Transcribed Image Text:Variable A: 0.15- 0.10- 0.05- 0.00 -0.05- -0.10- -0.15- 1.00- Variable B: 0.75- 0.50 - 0.00 0.25- 0 I I I I I I I I I I I I I I I I I I I Ś I I I I I I 12 10 I I lag [1M] 18 15 I I I 24 20
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