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Suppose you are given the following ARIMA(1,0,1) model: Y(t) = 0.0 + 1.0Y(t-1) + e(t) - 0.5e(t-1) Assume that t is the year 2009, and
Suppose you are given the following ARIMA(1,0,1) model:
Y(t) = 0.0 + 1.0Y(t-1) + e(t) - 0.5e(t-1)
Assume that t is the year 2009, and that Y(t) = 27. The predicted value for Y(t) = 27.5.
Calculate the forecast for Y for the year 2010.
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