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S&P 500 is a stock market index based on the market capitalization of 500 large companies in the U.S. Go to theFRED Economic Data websitehttps://fred.stlouisfed.org/series/SP500

S&P 500 is a stock market index based on the market capitalization of 500 large companies in the U.S. Go to theFRED Economic Data websitehttps://fred.stlouisfed.org/series/SP500

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

  1. Using R, create the 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.

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