# Question

In Figure, fitted autoregressive models of orders 1 through 4 are given for annual sales data. We then selected a model by testing the null hypothesis of autoregression of order p – 1 against the alternative of autoregression of order p at the 5% significance level. Repeat this procedure, but test at the 10% significance level.

a. What autoregressive model is now selected?

b. Obtain forecasts of sales for the next 3 years, based on this selected model.

a. What autoregressive model is now selected?

b. Obtain forecasts of sales for the next 3 years, based on this selected model.

## Answer to relevant Questions

For a certain product it was found that annual sales volume could be well described by a third-order autoregressive model. The estimated model obtained was as follows: xt = 202 + 1.10xt-1 – 0.48xt-2 + 0.17xt-3 + εt For ...The data file Quarterly Earnings shows quarterly earnings per share of a corporation over 7 years. a. Draw a time plot of these data. Does this graph suggest the presence of a strong seasonal component? b. Use the seasonal ...Using the data in the file Macro2010 develop an autoregressive model for fixed investment. First, use the data for the period 1965, first quarter, through 2000, fourth quarter, to forecast for the quarters in years ...Refer to Exercise 17.2. If a total sample of 130 faculty members is to be taken, determine how many of these should be full professors under each of the following schemes. a. Proportional allocation b. Optimum allocation, ...In the survey of Exercise 17.17, the households were asked if they had cable television. The numbers having cable are given in the accompanying table. a. Find a point estimate of the proportion of all households in the city ...Post your question

0