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Year Bonus($000) 2000 100.5 2001 74.1 2002 60.9 2003 99.9 2004 113.5 2005 149.8 2006 191.4 2007 177.8 2008 100.9 2009 140.6 2010 139 2011

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Year Bonus($000)
2000 100.5
2001 74.1
2002 60.9
2003 99.9
2004 113.5
2005 149.8
2006 191.4
2007 177.8
2008 100.9
2009 140.6
2010 139
2011 111.4
2012 142.9
2013 169.9
2014 172.9
Using the same Bonuses data above, a a. Fit a third-order autoregressive model to the bonuses paid and test for the significance of the third-order autoregressive parameter (use x = 0.05). b. If necessary, fit a second-order autoregressive model to the bonuses paid and test for the significance of the second-order autoregressive parameter (use a = 0.05). C. If necessary, fit a first-order autoregressive model to the bonuses paid and test for the significance of the first-order autoregressive parameter (use x = 0.05). d. Using the most appropriate model, forecast the bonuses paid in 2015 and 2016. e. Plot your actual and predicted bonuses (on the same graph) using your model selected in part d above. This requires that you have the predicted bonuses for each year (starting in 2010) using your selected model in part d

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