Oil prices. Recall the crude oil price data from Chapter 16.

A time series plot of monthly crude oil price ($/barrel)

from January 2001 to March 2007 is shown here.

Using these data,

a) Fit an appropriate autoregressive model by testing for the significance of each autoregressive term.

b) Obtain a forecast for March 2007.

Transcribed Image Text:

Crude Price ($/Bar) 70 28898 & 40 30- 20+ 10- Month Jan Jan Jan Jan Jan Jan Jan Year 2001 2002 2003 2004 2005 2006 2007