Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello! can you please help me solve this question? 2. You want to forecast the index of industrial production (IPt). Hence, you define yt =

Hello! can you please help me solve this question?

image text in transcribed
2. You want to forecast the index of industrial production (IPt). Hence, you define yt = 1200 . In IP: ), and estimate an AR(4) model on 492 monthly observations. You obtain the following IPt-1 parameter estimates and t-statistics (given in parentheses): yt = 1.377 + 0.318 yt_1 + 0.123 yt-2 + 0.068 yt-3 + 0.001 yt-4. (22.210) (4.077) (2.236) (1.021) (0.018) Moreover, you have gathered the following values of IP from July 2018 to December 2018: Date Jul 2018 Aug 2018 Sep 2018 Oct 2018 Nov 2018 Dec 2018 IP 147.595 148.650 148.973 148.660 148.206 147.300 Forecast the value of yt in January 2019. (15 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Modeling the Dynamics of Life Calculus and Probability for Life Scientists

Authors: Frederick R. Adler

3rd edition

840064187, 978-1285225975, 128522597X, 978-0840064189

More Books

Students also viewed these Mathematics questions

Question

Give some of the differences between law and equity.

Answered: 1 week ago