You are a business analyst for a global airline company and you have been tasked with researching time series and how it works along with mean function, residual analysis, and exponential smoothing. How can each one of these methods be presented to a CEO? Which would you recommend, or would you recommend using a combination of methods for an organization, such as an airline? Why might these options be feasible?
Research and write a minimum of four pages using APA formatting, with the following topics.
Basic Concepts to Explore and Compare:
- What is a time series, and how does it work?
- Mean Function: What is mean function or meanf(), and what are the pros and cons for using this statistic?
- Testing Data: Which estimation method (time series or mean function) is the best? Why? Is it any good? Why, or why not?
- What is exponential smoothing, and what are reasons that it is useful?
Other Forecast Methods:
- Is residual analysis a better option for analysis? Why, or why not?