Financial Forecasting and Behavioral Finance Group Project on Financial Forecasting The purpose of this project is to solidify your concepts on the principles of financial forecasting. This assignment involves conducting extensive research, gathering historical data and using statistical software to generate forecasts. You are required to perform the following tasks: 1. Identify a variable of interest (avoid stock prices, interest rates, currency values, gold, real estate and oil prices.) Explore variables such as company specific financials (output, sales, salaries, free cash flows, inventory, receivables, overheads, etc.), retail sales, local unemployment, rental market, electricity production/consumption, airline travel, sports forecasting, other microeconomic variables, etc. 2. Carry out an extensive research to identify 3-5 expla Document Preview:

Financial Forecasting and Behavioral Finance Group Project on Financial Forecasting The purpose of this project is to solidify your concepts on the principles of financial forecasting. This assignment involves conducting extensive research, gathering historical data and using statistical software to generate forecasts. You are required to perform the following tasks: 1. Identify a variable of interest (avoid stock prices, interest rates, currency values, gold, real estate and oil prices.) Explore variables such as company specific financials (output, sales, salaries, free cash flows, inventory, receivables, overheads, etc.), retail sales, local unemployment, rental market, electricity production/consumption, airline travel, sports forecasting, other microeconomic variables, etc. 2. Carry out an extensive research to identify 3-5 explanatory variables which may potentially impact the future changes in the identified variable of interest. You should be able to justify the following: (i) why and how the explanatory variables may uniquely impact the variable of interest (ii) whether the explanatory variables are measurable at the time the forecast is made. What do you know and when will you know it? 3. Gather historical data on all the variables for at least 100 observations. Use a statistical software (preferably spreadsheet) to conduct the following analysis: a. Perform data visualization analysis b. Perform correlation analysis c. Estimate multiple regression and interpret the parameters d. Generate forecasts for the future periods e. Perform forecast validation 4. The FRED (http://research.stlouisfed.org/fred2/tags/series)and the UHD library (http://library.uhd.edu/c.php?g=356697&p=2405882) contain several economic and financial datasets. Use a valid source for your research (academic journals, news magazine, business news, UHD library etc.) on the choice of explanatory variables. 1Each group is required to submit the…

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Forecasting.pdfSample–Forec….pdf