Question
The data in the table represent the January 1 stock price for the 33-year period from 1987 to 2019 for General Electric, one of the
The data in the table represent the January 1 stock price for the 33-year period from 1987 to 2019 for General Electric, one of the world's largest companies.
Year | GE Stock Price |
1987 | 2.25 |
1988 | 2.36 |
1989 | 2.48 |
1990 | 3.68 |
1991 | 3.38 |
1992 | 4.65 |
1993 | 5.35 |
1994 | 6.74 |
1995 | 6.76 |
1996 | 9.80 |
1997 | 13.75 |
1998 | 20.77 |
1999 | 29.99 |
2000 | 44.98 |
2001 | 42.27 |
2002 | 35.90 |
2003 | 22.37 |
2004 | 29.25 |
2005 | 35.29 |
2006 | 34.79 |
2007 | 22.30 |
2008 | 22.54 |
2009 | 8.15 |
2010 | 11.35 |
2011 | 14.62 |
2012 | 14.05 |
2013 | 17.36 |
2014 | 20.22 |
2015 | 19.90 |
2016 | 26.39 |
2017 | 15.09 |
2018 | 9.75 |
2019 | 6.89 |
a. Fit a third-order autoregressive model to the GE stock price and test for the significance of the third-order autoregressive parameter. ( Use alpha=0.05).
b. If necessary, fit a second-order autoregressive model to the GE stock price and test for the significance of the second-order autoregressive parameter. ( Use alpha=0.05).
c. If necessary, fit a first-order autoregressive model to the GE stock price and test for the significance of the first-order autoregressive parameter. ( Use alpha=0.05). Plot the predicted values by this model.
d. Forecast the GE stock price for years 2020 and 2021 using the appropriate autoregressive model among a b and c.
Please use excel to show answer. ty!
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