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  3. Forecasting in Economics and Business

Forecasting in Economics and Business (ECOM20002)

Undergraduate level 2Points: 12.5On Campus (Parkville)

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Overview

Year of offer2017
Subject levelUndergraduate Level 2
Subject codeECOM20002
Campus
Parkville
Availability
Semester 1
FeesSubject EFTSL, Level, Discipline & Census Date

This subject is an introduction to single equation forecasting methods and their applications to business, finance, economics and marketing. Special emphasis will be given to core forecasting techniques with the widest applicability. Attention will be paid to modelling and forecasting trends and cycles with topics including forecasting regression models, leading indicators, exponential smoothing methods, ARIMA models, pooling forecast procedures and forecast evaluation. The subject is applications-orientated.

Intended learning outcomes

On successful completion of this subject students should be able to:

  • Explain the main considerations of a successful forecasting model
  • Model and forecast trends
  • Model and forecast seasonality
  • Characterise, model and forecast cycles using moving average (MA), autoregressive (AR), and autoregressive moving average models (ARMA)
  • Define unit root processes, stochastic trends and model using autoregressive, integrated, moving average processes (ARIMA)
  • Model empirical processes using software

Generic skills

  • High level of development: problem solving; statistical reasoning; interpretation and analysis; critical thinking; synthesis of data and other information; evaluation of data and other information; use of computer software; accessing data and other information from a range of sources.

  • Moderate level of development: oral communication; team work; application of theory to practice; receptiveness to alternative ideas.

  • Some level of development: written communication; collaborative learning.

Last updated: 20 October 2017