In example 10 4, a bivariate AR(1) model was fit to ( Icirc CPI, Icirc IP) and The mean of ( Icirc CPI, Icirc IP) is (0 00518, 0 00215) and the last observation of ( Icirc CPI, Icirc IP) is (0 00173, 0 00591) Forecast the next two values of Icirc IP 0 767 0 0112 0 330 0 3014

Question: In example 10.4, a bivariate AR(1) model was fit to (ÎCPI, ÎIP) and The mean of (ÎCPI, ÎIP) is (0.00518, 0.00215) and the last observation

In example 10.4, a bivariate AR(1) model was fit to (Î”CPI, Î”IP) and

The mean of (Î”CPI, Î”IP) is (0.00518, 0.00215) and the last observation of (Î”CPI, Î”IP) is (0.00173, 0.00591). Forecast the next two values of Î”IP.

0.767 0.0112 0.330 0.3014

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