comment on the following graph Statistics NZ collect data on people travelling t
ID: 2931213 • Letter: C
Question
comment on the following graph
Statistics NZ collect data on people travelling to and from New Zealand. Below is a time-series plot of the number of NZ travellers going to Australia each month from January 2000 to October 2012.
1)Write a few sentences summarising the features of this graph
2)Explain why the exponential smoothed series would not be useful for predicting how many New Zealand travellers went to Australia in November 2012.
Time Series Plot of Australia 40000 35000 30000 25000 20000 15000 Month Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Explanation / Answer
Solution: 1) We see that the given graph uses a time series data of the number of NZ travellers going to Australia each month from January 2000 to October 2012. The given graph shows the component seasonal variation over time. Also the graph depicts the increasing trend over time.
2) Since Exponential smoothed series place higher weighting on recent data than the older one, they are more reactive to the latest changes in the data. It is therefore not suitable to use Exponential smoothed series in case where seasonality plays a role.
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