Consider the Consumer Price Index (CPI), which provides the annual percentage change in consumer prices. The data
Question:
a. Find the first six autocorrelations of this time series.
b. Use the results of part a to specify one or more promising auto regression models. Estimate each model with the available data. Which model provides the best fit to the data?
c. Use the best auto regression model from part b to produce a forecast of the CPI in the next year. Also, provide a measure of the likely forecast error.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Question Posted: