Given below is the crude oil production (million tonnes of oil equivalent) in Canada between 1991 and 2017. Use these time-series data to develop an autoregression model with a one-period lag. Now try an autoregression model with a two-period lag. Discuss the results and compare the two models.

Transcribed Image Text:

Crude Oil Production in Canada (million tonnes of oil equivalent) Year Million tonnes of oil equivalent 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 68.7 71.6 74.9 77.3 79.9 81.8 86.5 91.1 84.4 89.9 90.2 93.1 101.4 104.8 106.8 115.5 109.5 110.0 103.7 110.4 117.0 127.6 138.3 152.7 158.0 161.5 174.2