Question: 16.43 Another equality topic addressed in the OECDs gender studies is the pay gap. Using pay gap data in the data file OECD Pay Gap

16.43 Another equality topic addressed in the OECD’s gender studies is the pay gap. Using pay gap data in the data file OECD Pay Gap Data, develop a first-order and second-order autoregressive model for the pay gap in Japan. Use the data from 1975 through 2014 to build your autoregressive model. Next, forecast pay gap values for the years 2015 to 2019. Discuss the differences in the accuracy of the forecasts compared to the actual results, compare the performance of the first- and second-order models, and indicate reasons for the differences.

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