In Figure, fitted autoregressive models of orders 1 through 4 are given for annual sales data. We

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In Figure, fitted autoregressive models of orders 1 through 4 are given for annual sales data. We then selected a model by testing the null hypothesis of autoregression of order p – 1 against the alternative of autoregression of order p at the 5% significance level. Repeat this procedure, but test at the 10% significance level.
a. What autoregressive model is now selected?
b. Obtain forecasts of sales for the next 3 years, based on this selected model.
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Statistics For Business And Economics

ISBN: 9780132745659

8th Edition

Authors: Paul Newbold, William Carlson, Betty Thorne

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