For a given forecasting model, the figures below show the residual time plot (top figure), the ACF plot of the residuals (bottom left figure) and the histogram of residuals (bottom right figure). a) Does the forecasting model adequately capture all the information (dynamics) in the data? Ignore barely significant spikes. How did you reach this conclusion?

b) Is the model unbiased? How did you reach this conclusion?

c) Will the computation of prediction intervals likely be accurate? How did you reach this conclusion?

0.15- 0.10- 0.05 - 0.00 - -0.05 - -0.10 - Mumilyhangrahin -0.15- 1990 1995 2000 2005 20- 0.2- 0.1- 15 - ACF 0.0 count 10- -0.1 - -0.2 0- 12 16 -0.1 0.1 0.2 Lag 0.0 residuals 0.15- 0.10- 0.05 - 0.00 - -0.05 - -0.10 - Mumilyhangrahin -0.15- 1990 1995 2000 2005 20- 0.2- 0.1- 15 - ACF 0.0 count 10- -0.1 - -0.2 0- 12 16 -0.1 0.1 0.2 Lag 0.0 residuals