Table 7 following shows the autocorrelations of the residuals from an AR(1) model fit to the changes in the gross profit margin (GPM) of The Home Depot, Inc. TABLE 7 Autocorrelations of the Residuals from Estimating the Regression GPMMx=0.00060.33301 GPMt1+t1Q:19924Q:2001 (40 Observations) Table 8 shows the output from a regression on changes in the GPM for Home Depot, where we have changed the specification of the AR regression. TABLE 8 Change in Gross Profit Margin for Home Depot 1Q:19924Q:2001 use the information in Table 8 to project the change in gross margin for Home Depot assuming the preceding margin change was 2.5% and the margin change four quarters (one year) ago was +3%