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1. The graph below is the price of Bitcoin between 2009 and 2017. If we want to predict the price of bitcoin, which time series

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1. The graph below is the price of Bitcoin between 2009 and 2017. If we want to predict the price of bitcoin, which time series model in our class would you recommend. Give me your reason. (Hint: you should first see whether the data is stationary or not) (15 points) 1,000,000,000,000- 10,000,000.000 100,000,000 1,000,000 10,000 100 1 - 2009 2010 2011 2012 2013 2014 2015 2016 2017 2. Draw a typical graph of linear probability model with one independent variable. Use this graph to show that linear probability mode is NOT bounded by (0,1). (Hint: Indicate where D; will be greater than 1 and where it will be less than 0) (20 points)

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