Consider the sales of new one-family houses in the USA, Jan 1973 – Nov 1995 (data set hsales ). a. Produce some plots of the data in order to become familiar with it. b. Split the hsales data set into...

Consider the sales of new one-family houses in the USA, Jan 1973 – Nov 1995 (data set hsales ).

a. Produce some plots of the data in order to become familiar with it.

b. Split the hsales data set into a training set and a test set, where the test set is the last two years of data.

c. Try using various benchmark methods to forecast the training set and compare the results on the test set. Which method did best?

d. Check the residuals of your preferred method. Do they resemble white noise?