S&P 500 is a stock market index based on the market capitalization of 500 large companies in the U.S. Go to the FRED Economic Data website

(Links to an external site.)

for S&P 500 and download the data for just one year. You may choose any one-year window.

1. Using R, create a time series plot for the dataset. Describe the plot.

2. Using R, fit the dataset to linear regression and moving average models. Which model do you think is a better predictive model? Explain why.

3. Discuss how you can improve the prediction.