Question: Answer the following questions using the data from the Excel file S&P 500.xlsx described in Problem 16.51: The S&P 500 reached an all-time high September

Answer the following questions using the data from the Excel file S&P 500.xlsx described in Problem 16.51:

The S&P 500 reached an all-time high September 27th, 2018, at 2,914. The data in excel file S&P 500 show the end-of-the-month value for the S&P 500 for the last two years.

a. Forecast the S&P Index for the end of October 2018 using a trend projection.

b. Check the forecasting model in part a for the presence of auto-correlation using α = 0.05.

c. Comment on the appropriateness of using trend projection for these data.

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