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Q2 (a) what is stochastic trend? Set a stochastic trend model to the following data. Forecast the value for 2013 [15] Years 2005 2006 2007

Q2 (a) what is stochastic trend? Set a stochastic trend model to the following data. Forecast the value for 2013 [15]

Years

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

sales

21.6

22.9

25.5

27.2

28.3

29.7

31.5

33.6

34.5

35.6

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