Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following estimated time series regression using the data upto year 2013: APLCt = Bo+ BIAPLCt-1+ 1AGDPt-1+ . . .+ PqAPLCt-q1 + @q2AGDPt-q2 +

image text in transcribed
Consider the following estimated time series regression using the data upto year 2013: APLCt = Bo+ BIAPLCt-1+ 1AGDPt-1+ . . .+ PqAPLCt-q1 + @q2AGDPt-q2 + Ut Choose the optimal lag lengths for APLC and AGDP using BIC; then make a forecast for PLC in (1,1) (2,2) (3.3 (4,4 0.017 0.015 0.013 Bo 0.011 (3.204) (2.517) (1.845) (1.358) 0.516 0.676 0.660 0.659 B1 (3.930) (4.298) (3.985) (3.951) -0.391 -0.538 -0.514 -0.529 0 1 (-2.508) (-3.116) (-2.818) (-2.894) -0.271 -0.263 -0.258 B-2 (-1.651) (-1.300) (-1.231) 0.306 0.292 0.340 012 (1.706) (1.384) (1.525) 0.024 -0.110 B3 (0.141) (-0.522) 0.060 0.166 03 (0.313) (0.756) 0.240 BA (1.376) -0.122 04 (-0.610) BIC -6.903 -6.829 -6.696 -6.595 year 2014 and compute the forecast error based on the following data. Year 2010 2011 2012 2013 2014 PLC 1.059 1.113 1.123 1.108 1.060 GDP 1.483 1.552 1.576 1.647 1.685

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

Students also viewed these Economics questions