Lab 2

Please use D2L to turn in both the PDF/ Word output and your R Markdown file.

Assume you have been hired by a local purveyor of avocado toast, let’s say Jam, to perform research on avocado prices. For this lab you will explore a dataset containing historical sales prices and volumes of avocados. More details about the complete dataset can be found here https://www.kaggle.com/neuromusic/avocado-prices/home.

A subset of this dataset is available at http://math.montana.edu/ahoegh/teaching/timeseries/data/avocado_west.csv. The dataset contains the following variables:

• Date: (note, the read_csv() function may read this as a date-time object)
• AveragePrice: the price of a single avocado
• TotalVolume: the amount of avocados sold
• Type: category to denote conventional or organic

1. Data Visualization (40 points)

Create a visualization to display the dataset and include a 2 to 3 sentence caption to describe your figure. Note there are a few different things you could choose to focus on here, but clearly describe (in the graph and caption) would you are focusing on.

2. Time Series Decomposition (40 points)

Create a visual decomposition of the time series and discuss what you see.

(STAT 536). Write out the decomposition

3. Forecasting (20 points)

a.

Discuss a strategy for estimating the volume of avocados sold weekly for a year, given that you know the prices.

b.

Discuss a strategy for estimating the volume of avocados sold weekly for a year, given that you don’t know the prices.