F IL E Consider the following portion of data on the variable y. The data are on

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F IL E Consider the following portion of data on the variable y. The data are on the text website, labeled Exercise 18.34.

t y 1 29.32 2 30.96

⋮ ⋮

24 48.58

a. Estimate an autoregressive model of order 1, yt = ß 0 +

ß1yt-1 + є t,to make a one-step-ahead forecast (t = 25) fo r y.

b. Estimate an autoregressive model of order 2, yt = β 0 +

β1yt_1 + β2yt-2 + єt, to make a one-step-ahead forecast

(t = 25) fo r y.

c. Which of the above models is more appropriate for forecasts? Explain.

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Business Statistics Communicating With Numbers

ISBN: 9780071317610

1st Edition

Authors: Kelly Jaggia

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Question Posted: Jul 27, 2024 08:01 AM

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F IL E Consider the following portion of data on the variable y. The data are on

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Business Statistics Communicating With Numbers

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