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You are given the data in file Coca_Cola_Dividends.txt - Quarterly Dividend data starting from July 1995. Read in the text file and create the required

You are given the data in file "Coca_Cola_Dividends.txt" - Quarterly Dividend data starting from July 1995.

  1. Read in the text file and create the required "Date" Field.
  2. Obtain a plot the series.
  3. Using the Autocorrelation Function Plot and the White Noise Test Plot evaluate if the series represents White Noise? Why or Why Not? Please explain in detail.
  4. Using SAS Time Series Forecasting System Module estimate the following two models: 

i. Random Walk (Hint: Hint: Use Fit ARIMA Models Option)

ii. Random Walk with Drift (Hint: Use Fit ARIMA Models Option)

Evaluate which model provides a better fit using Root Mean Square Error and Mean Absolute Percent Error.

  1. Using the Coefficient estimates and test statistics provided, evaluate if the Drift Component is statistically significant in the Random Walk with Drift model.
  2. Obtain 3 Period Ahead Forecasts from each Model. Which model among the two will you select as the model you want to use for forecasting coca cola dividends? Please explain your reasoning.

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Creating the Date Field To create the Date field we need to know the starting date and the frequency of the data From the given information we know th... blur-text-image

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