Consider the following portion of data on y and x. t........................y............... x 1...................18.23.......... 17.30 2................... 19.82......... 16.05
Question:
Consider the following portion of data on y and x.
t........................y............... x
1...................18.23.......... 17.30
2................... 19.82......... 16.05
⋮......................... ⋮............... ⋮
12................... 22.75.........13.66
a. Estimate yt = β0 + β1xt−1 + εt , to make a one-stepahead forecast for period 13.
b. Estimate yt = β0 + β1yt−1 + εt , to make a one-stepahead forecast for period 13.
c. Which of the above models is more appropriate for forecasts? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Business Statistics Communicating With Numbers
ISBN: 9780078020551
2nd Edition
Authors: Sanjiv Jaggia, Alison Kelly
Question Posted: