Question
The below time series gives the indices of Industrial Production in U.S for 10 consecutive years. Year IP 1 79.62 2 86.54 3 88.14 4
The below time series gives the indices of Industrial Production in U.S for 10 consecutive years.
| Year | IP |
| 1 | 79.62 |
| 2 | 86.54 |
| 3 | 88.14 |
| 4 | 89.23 |
| 5 | 93.45 |
| 6 | 97.4 |
| 7 | 99.34 |
| 8 | 96.98 |
| 9 | 100.22 |
| 10 | 103.56 |
a. Construct a time series plot. What type of pattern exists in the data?
b. Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series.
c. What is the forecast for t = 11?
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Linear Algebra A Modern Introduction
Authors: David Poole
3rd edition
9781133169574 , 978-0538735452
