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Consider the following time series: t Yt 1 1,234 2 1.201 3 1,103 4 987 5 945 6 891 7 817 8 734 The time
Consider the following time series: t Yt 1 1,234 2 1.201 3 1,103 4 987 5 945 6 891 7 817 8 734 The time series plot is shown below: 1400 1200 1000 600 400 200 Assume the model below provides optimal forecasts: Explanatory Variables Intercept Coefficient 1315.67 -72.59 Standard Error 16.75 3.31 t-stat p-value 78.51 .001 -21.87 .001 t R2 = 98 (e) (15 points) Find the mean squared error. (f) (5 points) What is the forecast for t=9
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