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Consider the model Yt = Bo + Bit + Xt, t = 1, 2, ... where Xt = QXt-1 + Et, t = 1, 2,

Consider the model Yt = Bo + Bit + Xt, t = 1, 2, ... where Xt = QXt-1 + Et, t = 1, 2, ..., and {Et, tez} is white noise with unit variance. Assume that Bo, B1, d are known. What is the 2-steps ahead forecast: Y t (2) ? O Bo + BI(t + 2) O Bo + BI(t + 2) + Xt+2 O Bo + Bi(t + 2) + 2(Yt - Bo - Bit) O Bo + BI(t + 2) + Xt

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