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Suppose that you estimate an AR(2) model and obtain the following results: yt = 0.039 + 0.77yt-1 + 0.09yt-2 + ut. Assuming that yT-1 =

Suppose that you estimate an AR(2) model and obtain the following results:

yt = 0.039 + 0.77yt-1 + 0.09yt-2 + ut.

Assuming that yT-1 = 4.27 and yT-2 = 3.52, produce the forecasts of y for T and T +1.

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