The accompanying file contains data for y. a. Estimate an autoregressive model of order 1, y t

Question:

The accompanying file contains data for y. 

a. Estimate an autoregressive model of order 1, yt = β0 + β1yt−1 + εt, to make a one-step-ahead forecast (t = 25) for y. 

b. Estimate an autoregressive model of order 2, yt = β0 + β1yt−1 + β2yt−2 + εt, to make a one-step-ahead forecast (t = 25) for y.

ty
129.32
230.96
335.79
438.79
542.73
642.49
743.06
845.16
946.31
1045.66
1148.46
1245.52
1348.83
1447.84
1546.01
1644.93
1747.77
1845.63
1945.38
2045.78
2144.84
2246.86
2348.12
2448.58
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: