Quarterly GDP values. The gross domestic product (GDP) is

Chapter 14, Problem 65SE

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QUESTION:

Quarterly GDP values. The gross domestic product (GDP) is the total U.S. output of goods and services valued at market prices. The quarterly GDP values (in billions of dollars)

Year

Quarter

Year

Quarter

GDP

2007

1

 

3

13,921

 

2

 

4

14,087

 

3

2,010

1

14,278

 

4

 

2

14,468

2008

1

 

3

14,606

 

2

 

4

14,755

 

3

2,011

1

14,868

 

4

 

2

15,013

2009

1

 

3

15,176

 

2

 

4

15,319

for the period 2007–2011 are given in the accompanying table. Using weights w = .5 and n = .5, calculate Holt forecasts for the four quarters of 2012.

Questions & Answers

QUESTION:

Quarterly GDP values. The gross domestic product (GDP) is the total U.S. output of goods and services valued at market prices. The quarterly GDP values (in billions of dollars)

Year

Quarter

Year

Quarter

GDP

2007

1

 

3

13,921

 

2

 

4

14,087

 

3

2,010

1

14,278

 

4

 

2

14,468

2008

1

 

3

14,606

 

2

 

4

14,755

 

3

2,011

1

14,868

 

4

 

2

15,013

2009

1

 

3

15,176

 

2

 

4

15,319

for the period 2007–2011 are given in the accompanying table. Using weights w = .5 and n = .5, calculate Holt forecasts for the four quarters of 2012.

ANSWER:

Step 1 of 10

Forecast the four quarters of 2012 by using Holt’s model with  and as shown below:

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