In Figure 16.10, fitted autoregressive models of orders 1 through 4 are given for annual sales data.
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In Figure 16.10, 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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Related Book For 
Statistics For Business And Economics
ISBN: 9781292436845
10th Global Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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